Why Shiba Inu price is back where it traded one year ago
- Shiba Inu witnessed a burn of over 1 billion SHIB tokens over the past week.
- Whales continued to scoop up Shiba Inu coin, the meme coin ranks among the most used smart contracts.
- Analysts predict another correction in Shiba Inu price, despite rising utility and adoption by large wallet investors.
UPDATE: Shiba Inu price is back where it traded one year ago, just below the round $0.000010 level. The meme coin fell below the mentioned support on Saturday and has not been able to recapture it, trading between $0.0000075 and $0.0000085 for the past 24 hours. The slowdown of the current crypto market slide, including a bit more stable price behaviour in Bitcoin and Ethereum is giving some hope to the SHIB holders that the so-called Dogecoin killer might hint at some recovery rally. Shiba Inu has formed a bullish divergence, a technical situation defined by the Relative Strength Index (RSI) making higher lows despite the asset's bearish price action. According to FXStreet crypto analyst Akash Girimath, this setup and the weak resistance shown by immediate upper levels in IntoTheBlock's Global In/Out of the Money model could trigger a 15% SHIB relief rally.
Shiba Inu coin is back in the top 10 cryptocurrencies by trade volume among 500 largest Ethereum whales overnight. Whales have continued to scoop up the meme coin, regardless of the downtrend in Shiba Inu price.
Also read: Shiba Inu faces this rare threat as burn rate declines
Shiba Inu whales increase activity
Large wallet investors on the Ethereum blockchain have continuously scooped up the so-called Dogecoin-killer through the recent dip. Shiba Inu price posted 10% losses overnight, however whales have continued accumulation.
Over the last 24 hours, activity of large wallet inventors has increased. Based on data from WhaleStats, there is a 44.44% spike in active whale addresses, as these large wallet investors interact with billions of Shiba Inu coins.
The top 2000 whale wallet addresses on the Ethereum network actively engaged in trading Shiba Inu coin despite a 25% decline in price.
Portfolio of 100 largest Ethereum whales
Shiba Inu powered Welly NFT mint successful
Shiba Inu recently powered the world’s first real-fast food business NFT, Welly Friends. Welly is the burger joint that rebranded to Shiba Inu theme and emerged as the first real-world utility of the Dogecoin-killer.
The project successfully completed the mint of its NFTs and thanked the ShibArmy for their support.
We will never be able to thank you enough for how you all were able to support us.
— WELLY (@wellyfriends) June 12, 2022
Dear #WellyFriends & #SHIBARMY,
We promise we’re going to keep our promises as much as you should us your dedication to this project.
Big news coming soon, and it will be constant.
The floor price of the collection is currently 0.29 ETH on the largest peer-to-peer NFT marketplace, OpenSea.
After the disappearance of Ryoshi, the creator of Shiba Inu, Shytoshi Kusama came forward as the project leader and stated that Welly NFTs were created to act as membership instruments. These NFTs will act as smart contracts for particular Welly locations.
ShibArmy is currently awaiting the reveal of the NFTs that currently appear as a gif. Welly NFT has promised holders that “something big is coming soon.”
Shiba Inu continues to burn
Over the past week, according to data from the burn portal, nearly 1 billion Shiba Inu coins were burned. There is a spike in burn rate of the Dogecoin-killer meme coin project. 410.36 trillion Shiba Inu tokens have been burnt so far, pulling these coins out of circulation and sending them to dead wallets.
Since these tokens are permanently removed from the supply, burn of Shiba Inu is a driver of bullish sentiment among holders and ShibArmy.
Burnt Shiba Inu
Buying pressure for Shiba Inu increased on Coinbase
Proponents have noted that, in an exciting turn of events, buying pressure on Shiba Inu has reached its yearly highs. On Coinbase, one of the largest cryptocurrency exchanges, 81% of users are keen on buying Shiba Inu, against 19% selling, according to data from the platform’s trading application.
This is the highest number of “buy” orders placed for Shiba Inu, second to what was observed in September 2021, when it was 91%. Post September 2021, Shiba Inu went parabolic and witnessed a 1,000% price rally in October.
Increase in buying pressure on Coinbase’s trading app
Analysts remain bearish on Shiba Inu price
Analysts have evaluated the Shiba Inu price trend and revealed a bearish outlook. Eno Ikenna Eteng, a leading crypto analyst, argues that the SHIB/USDT price chart reveals there is a possibility of further downside.
The analyst argues that the measured move from the collapse of the descending triangle on the Shiba Inu price chart has not been completed. The next target for bulls is $0.0000066. The June 2021 double bottom level $0.00000565 is the downside target for Shiba Inu price if the meme coin continues deteriorating.
SHIB-USDT price chart
Analysts believe Shiba Inu price could fail to break support
FXStreet analysts have observed the price chart and noted that Shiba Inu price could continue its downtrend and fail to break support. For more information, watch this video:
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
