Shiba Inu’s active addresses have crashed over 50% in three months, providing a bearish outlook for the top meme coin. This development has also coincided with the SHIB price crash during this period.
Shiba Inu’s Active Addresses Crash Over 50%
Santiment data shows that Shiba Inu’s active addresses have crashed by over 50% since they peaked on May 2 at around 7,800. Since then, this metric has been on a downtrend, dropping to as low as 2,500 earlier in June. Now, the number of active SHIB addresses is currently at an average of 3,000.
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The drop in Shiba Inu’s active addresses has followed the crash in the SHIB price. Notably, the meme coin reached a peak of around $0.17 in May and has been in a downtrend since then. CoinMarketCap data shows that Shiba Inu is down over 10% from its 3-month high in May. SHIB’s decline has occurred despite the bullish sentiment in the broader crypto market.
During this period, Bitcoin and Ethereum have rallied to new all-time highs (ATHs). However, the SHIB price has underperformed despite its positive correlation to the flagship crypto assets. Meanwhile, Shiba Inu’s network growth also paints a bearish picture for the meme coin. Santiment data shows that this metric has been on a downtrend since it peaked in July.
Back then, the network growth hit 2,309 in reference to the number of new users adopting Shiba Inu. Since then, the network growth has spiraled down, dropping to as low as 1,078 on September 1. However, a positive for the SHIB price is that the number of holders has increased during this period.
Santiment data shows that the total number of SHIB holders has increased during the past three months and is currently at 1.53 million. This suggests that investors continue to believe in the SHIB price’s trajectory, despite its underperformance so far. The meme coin is down over 43% year-to-date (YTD).
SHIB Price Confirms Bullish Pattern
From a technical analysis perspective, crypto analyst Javon Marks has also provided a bullish outlook for Shiba Inu. In an X post, he stated that the SHIB price has confirmed a bullish pattern in a regular bull divergence, as indicated by the MACD Histogram.
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Marks explained that this suggests that a major bullish reversal back to the upside may be on the horizon. This could include a rally of over 163% to the $0.00003 range, which the analyst claimed may only be the start. As the SHIB price continues to hold its breakout over an older structure, he predicted that the meme coin could record a rally of over 570% to the $0.000081 breakout target.
At the time of writing, the Shiba Inu price is trading at around $0.00001228, up over 2% in the last 24 hours, according to data from CoinMarketCap.
Featured image from Getty Images, chart from Tradingview.com
