Amid Bitcoin’s recent surge to an all-time high of $73,600 in March, the meme coin market emerged as the most lucrative sector in the market, giving average returns exceeding 1,300% among the top tokens by market capitalization. However, with Bitcoin’s price retreating to the $60,000 level, traders are now setting their sights on potential gains in meme coins. Notably, SHIB is showing significant signs of activity, creating hopes of a bullish turnaround amid negative metrics.
Shiba Inu’s Open Interest Declines Amid Consolidation
Traders on both sides are experiencing significant losses, as Coinglass has reported a total of over $600,000 in liquidated positions. Moreover, interest in trading Shiba Inu has noticeably decreased, with its open interest plummeting from a high of $138 million to just $53 million, indicating a slowdown in market activity and leading to less price fluctuation for SHIB.
Data from IntoTheBlock shows that Shiba Inu has established critical support at $0.00001, with prices ranging between $0.000008 and $0.000014. Around 400,000 addresses have acquired 244 trillion SHIB tokens. It’s noted that exactly 397,000 addresses currently hold about 244 trillion SHIB at an average price of $0.00001, potentially providing strong support to prevent the price from falling below this level.
The current trend suggests a potential rebound for SHIB, particularly as its blockchain, Shibarium, shows positive indicators. Shibarium has seen a remarkable increase of 160% in the last 24 hours, highlighting a recovery in key metrics. Shibariumscan data reveals that transactions on the network jumped to 562,980 in the reviewed period from 352,000 earlier in the day. This boost in activity comes after a significant drop just two days before, when transactions fell by 63.2% from a high of 958,500.
Consequently, since its inception in August 2023, Shibarium has processed a staggering 415 million transactions. Moreover, the number of user accounts has grown significantly, now accounting for 1.782 million addresses. This might strengthen the current buying dominance among SHIB holders.
What’s Next For SHIB Price?
Shiba Inu has been oscillating within a narrow range of symmetrical triangle pattern for the last three days, suggesting a balance in buying and selling activity at these price levels. However, buyers are aiming to send the price above the descending resistance line. As of writing, SHIB price trades at $0.0000226, surging over 2.1% in the last 24 hours.
The bulls are trying to send the price above the EMA100 trend line and a breakout above the current downtrend line could signal that bearish momentum is declining. This could send the pair upwards to $0.000028, where it’s likely to encounter substantial resistance from the bears.
The bears are poised to challenge the support at the $0.000021 mark again. A breach of this level could trigger an intensified sell-off, potentially plunging the SHIB/USDT pair sharply towards the next significant support at $0.000019, effectively erasing all gains from the latest rally phase.
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Shayan Chowdhury
Shayan is a digital nomad and a professional journalist. He delivers high-quality engaging articles to Coinpedia through his in-depth research and analysis.
