Shiba Inu Faces Steep Decline in Active User Engagement, Yet Bullish Signs Emerge for SHIB Price
The popular meme coin, Shiba Inu (SHIB), has witnessed a significant downturn in its on-chain activity, with active addresses plummeting over 50% in the last three months. This sharp decline has coincided with a notable fall in SHIB's price, painting a predominantly bearish picture for the asset. However, a deeper look reveals conflicting signals, including an increase in long-term holders and a compelling bullish technical pattern identified by analysts.
On-Chain Metrics Point to Cooling Interest
According to data from Santiment, Shiba Inu's active addresses peaked at approximately 7,800 on May 2nd before crashing by more than half. The metric hit a low of 2,500 in June and currently averages around 3,000 active addresses. This reduced user engagement reflects a broader underperformance of SHIB, especially when compared to crypto giants Bitcoin and Ethereum, which have both rallied to new all-time highs during the same period. SHIB's price itself has fallen over 10% from its three-month high in May and is down over 43% year-to-date, despite a generally bullish sentiment across the wider crypto market. Further compounding the bearish outlook, Shiba Inu's network growth, which tracks new user adoption, has also seen a steady decline since its July peak of 2,309, dropping to 1,078 by September 1st.
A Bullish Reversal on the Horizon?
Despite the discouraging on-chain data, there are reasons for cautious optimism. Santiment data indicates that the total number of SHIB holders has actually increased over the past three months, reaching 1.53 million. This suggests that a core group of investors maintains faith in SHIB's long-term trajectory, even amidst short-term price struggles. Adding to this positive sentiment, crypto analyst Javon Marks has presented a bullish technical analysis for Shiba Inu. Marks identifies a "regular bull divergence" in SHIB's price action, as indicated by the MACD Histogram, suggesting that a significant bullish reversal may be imminent. He projects a potential rally exceeding 163%, which could push SHIB into the $0.00003 range, and further predicts a rally of over 570% towards a $0.000081 breakout target if the current price maintains its breakout above an older resistance structure. At the time of writing, Shiba Inu is trading at approximately $0.00001228, having seen a modest gain of over 2% in the last 24 hours. This mixed bag of declining active addresses but rising holder confidence and bullish technical indicators creates an intriguing dynamic for the meme coin's future.
