#SHIBUSDT ( Shib*1000 ) - Bullish Breakout at Risk of Fading

Shiba Inu’s price was breached through the two-and-a-half-month-old downtrend line, but it faces bearish cues.

The meme coin craze can be seen fading rather rapidly, with the transaction volume falling to February lows.

The asset's adoption rate is also at an eight-month low, suggesting a lack of interest from potential investors.

Shiba Inu’s (SHIB) price is not exhibiting the most impressive performance despite breaking out of a downtrend.

The investors’ lack of support is a concern, and it could lead to the meme coin losing the rally.

Shiba Inu Investors Remain Skeptical

Shiba Inu’s price action has disappointed its investors, resulting in SHIB holders stepping away from participating in the network. This is evident in the transaction volume.

The average daily transaction volume has fallen from $169 million in April to $38 million in May. This is a 77% decline, which is largely due to the waning meme coin craze, which resulted in the surge of tokens such as dogwifhat (WIF) and Pepe (PEPE).

Furthermore, the lack of optimism observed in investors extends to those who have yet to join the network. This is visible in the adoption rate, which is presently at an eight-month low. 

The adoption rate measures the rate at which new addresses are formed on the network. This assesses whether the project is losing or gaining traction in the market. In the case of SHIB, this adoption rate is at 29%, suggesting only 29% of all active addresses are new investors.

While this is not the worst, it is not the best either, given that Shiba Inu has seen better participation from new investors in the past