Bad news for Shiba Inu coin, which is seeing a dramatic decline in the number of active addresses in the crypto exchange.
From its peak in 2021 until now, there has been an 82% drop in users, showing little interest in the memecoin.
The decline in this metric follows that of the crypto’s price, which is 90% below historical highs.
Shina Inu coin : reduction in addresses holding the crypto
Over the past two years, Shiba inu coin has gone through a really tough time: the crypto in addition to seeing its value depreciated is experiencing a serious decrease in interest from its community.
In detail, while prices have gone down 90% from their all-time high touched in October 2021, the number of active addresses has seen a serious drop from 756,000 to 129,000. This is a decrease of more than 600,000 addresses or -82%.
Keep in mind that the term “active addresses” refers to wallets that have recently carried out crypto transfers as a sender or receiver.
These, although as of May 2023 have more than doubled from the previous month, mark values 5 times lower than the ATH of the coin, with an overall trend that is blatantly bearish.
All this gives Shiba Inu coin holders pause for thought given that during the period of its explosion between March and May 2021, the crypto had experienced a 2,850% increase in users from 18,600 to over 550,000 active addresses.
Golden times like those will probably never return.
The data on the number of NEW addresses has also plummeted since October 2021: in two years, the number of new crypto entities that have had a balance in Shiba Inu coin has dropped 537,000 to 89,500 on a monthly basis.
This means that the optimism and eagerness to enter the market characteristic of the bull run period of 2021 is no longer there. Past investors are skeptical and have abandoned the altcoin world, meanwhile new users do not trust and prefer to stay and observe.
In any case, there is still the positivity of recent months to be noted with an increase of 52,180 addresses from May through July.
Far from a return to the heyday, but still a small recovery from a period without stimulus.
Price analysis of SHIB
The drop in the number of active and new addresses on the Shiba Inu (SHIB) coin is justified by the disappointing price performance for the crypto, which ranks as one of the worst coins for losses in value.
Between January and June 2023 SHIB ranked as the second worst performing cryptocurrency among the 10 most capitalized currencies in the market, taking about 11%.
Ahead of it was only Toncoin (TON), which experienced a 36% price decline over the same period.
According to data from IntoTheBlock, the cryptocurrency Shiba has brought more losses than gains to 82% of its holders.
The poor performance of the Shiba Inu crypto is characteristic of the entire memecoin sector, which sees appreciations only in certain instances of uncontrolled euphoria, losing ground over most of its existence.
Out of 28 candlestick months, taking the listing on Binance as a starting point, the coin has seen increases in only 12 candlesticks, including one with an 830% pump and the other 11 with insubstantial increases. Instead, the other 18 months saw heavy declines.
The majority of the price action is for distribution, with brief bullish breaks, destined to die and be suppressed by bears.
Currently Shiba Inu coin is priced at $0.00000898, with a capitalization of $5.2 billion and trading volume in the last 24 hours hovering around $230 million.
For holders of the currency, hopes for new bullish momentum are contingent on breaking the psychological $0.00001 level and prices returning above the 60-period exponential moving average on a weekly time frame positioned at $0.0000112.
Once these two hurdles are overcome there will be the third at $0.000015, the overcoming of which could likely give room for major movements.
On the opposite side, those shorting may find an opportunity to open positions around $0.0000082 with ample room to maneuver up to $0.0000065.
Beyond $0.0000055 to the downside, things would get really bad for the Shiba Inu coin.