SHIB active addresses fell by 62.4% to 18,64k, while holders suffered losses.
New addresses created to support ecosystem growth surged to 8,400 after exceeding 21,000.
A 40% drop in Shiba Inu Coin price could test the support at $0.000015.
Shiba Inucoin’s price is quickly erasing gains since the fourth quarter of last year as meme coins have fallen more than other cryptocurrencies. The second-largest dog-themed token, with a market capitalization of $15 billion, saw its value fall 19% in seven days to $0.0000255 on Wednesday, building on a 28% drop in two weeks.
If trading volume continues to decline, causing investor interest to shrink, the recovery of the Shiba Inu will be significantly inhibited.
Shiba Inu Coin Price Analysis: Leading to a Potential 40% Dive
By March 5, SHIB had surged to $0.00004563, in response to Bitcoin’s continued rise above $73,000. This price increase has spread to other memecoins, such as PepeCoin (PEPE), which has reached new all-time highs.
The price of Dogecoin, the largest memecoin and currently among the top ten cryptocurrencies, climbed above $0.2, reflecting traders’ high risk appetite. Like Shiba Inu Coin, DOGE fell to $0.1352, down 35% from recent highs.
If prices continue to slide, meme coin hype could quickly decline in Q4 and Q1.
Shiba Inu Coin is currently hovering between two key levels that could determine the direction of the coin post-consolidation. On the bright side, the 20-day exponential moving average (EMA) at $0.0000265 (blue line) halts further moves towards $0.00003, while the 200-day EMA at $0.00002348 The moving average (purple line) acts as support.
SHIB must hold above 200-day EMA support, otherwise the clearly damaged technical structure could worsen, ultimately leading to more losses.
According to the Relative Strength Index (RSI), the path of least resistance slopes downwards as long as the RSI remains below downtrend line resistance.
To play it safe and stay away from the obvious influence of sellers, SHIB must rise above the 20-day EMA to validate a trend reversal. Still, remaining below the two key moving averages suggests a bearish bias.
Bulls must be determined enough to convince traders to seek long positions to push Shiba Inu Coin through another break above $0.00003 and 2024 highs of $0.00004558.
Internet activity decreases, can Shiba Inu be rescued?
The Shiba Inu's downward trend has resulted in many injuries, which could explain the significant drop in online activity. IntoTheBlock’s blockchain data shows that since March 5, the number of active addresses has dropped by 62.4%, from 49.53k to 18.64k.
The 60% drop in the number of newly created addresses reflects the price adjustment. If the pullback continues, SHIB may not be able to build the momentum to sustain an uptrend during its potential recovery phase.
