Shiba Inu Drops 2.589% as Active Addresses Hit One-Year Low

Shiba Inu's latest price was $0.00001169, down 2.589% in the last 24 hours. The cryptocurrency has experienced a decline in the number of daily active addresses, dropping to a one-year low. This decrease indicates a waning interest in the meme coin. However, if market sentiment shifts positively and the number of daily active addresses reaches one million, it could signal significant market interest and network usage, potentially fueling a price recovery.

Data from Santiment reveals a drastic drop in the number of daily Shiba Inu active addresses, with the current number standing at 3,220, a notable decrease from the year-to-date high of 8,509. In May 2021, the number of active SHIB addresses reached a peak of 60,496, coinciding with Ethereum founder Vitalik Buterin burning more than 400 trillion SHIB tokens. This event fueled market interest in the meme coin.

Shiba Inu has some of the strongest fundamentals in the meme coin industry. Unlike Dogecoin, Pepe, and Fartcoin, it is the only deflationary coin. Its annual deflation rate has dropped to minus 0.0059%. SHIB has already incinerated over 410 trillion tokens since its inception, leaving those in circulation at over 584 trillion. This incineration trend will likely continue as the Shibarium network grows.

Shibarium Scan data shows that the number of total addresses in Shibarium has jumped to 197.45 million, a figure that will likely reach 200 million later this month. It has completed over 1.047 billion transactions. Shibarium’s growth is important, as some of its BONE fees are transformed into SHIB and moved to a burn address.

The popular meme cryptocurrency Shiba Inu has seen its burn rate explode by over 2000% as approximately 20 million tokens were permanently removed from circulation. Despite this massive reduction in supply, SHIB’s price continued to trade sideways, leaving investors and analysts with mixed views on its short-term direction. This process aims to reduce the total circulating supply, which currently stands at 584.37 trillion tokens.

Some analysts within the Shiba Inu community see positive signs on the horizon. A prominent SHIB trader known as @army_shiba posted on X: “$SHIB – New pump wave loading,” sharing a chart with an upward trajectory targeting the $0.00001400 level from the current price zone around $0.00001238. Another analysis published on TradingView identified an inverted head and shoulders pattern on the SHIB/USD chart, which often signals a shift from decline to rally. The analyst suggested upside targets of $0.00001259 and $0.00001282 if the token breaks above the neckline with increased volume.

Community sentiment appears to favor an upward move. CoinMarketCap’s user-based sentiment gauge—compiled from over 963,000 votes—showed 88% of participants expecting the Shiba Inu price to rise.

Not all analysts share the bullish outlook. Some chart experts point to concerning long-term signals that suggest SHIB could be headed for a substantial drop. The Shiba Inu price chart shows the token remains stuck in a downtrend since reaching highs around $0.000033 in late 2024. Throughout this year, SHIB has repeatedly failed to break through resistance at its 21 and 50-day moving averages. More worryingly, the price has formed what appears to be a descending triangle pattern over recent months, which often precedes bearish breakouts. Some analysts warn that a breakdown below support in the $0.000010 area could trigger a decline to 2023 lows around $0.000006, representing a 50% drop from current levels.

The meme coin market has been experiencing a deflation period, worsened by the launch of former US President Donald Trump’s official meme coin, which reportedly pulled liquidity from the space and left many investors at a loss. One expert going by “wallstreetbets” on X has claimed that “Despite burns, SHIB supply remains unchanged,” casting doubt on the effectiveness of the token burning strategy that many SHIB supporters believe will eventually drive prices higher. Broader market conditions may also play a role in SHIB’s future price action. While trade war fears have receded somewhat and Federal Reserve commentary has been supportive of market sentiment, uncertainty about a possible US recession remains high. Recent economic data, including University of Michigan sentiment numbers, points to economic deterioration. If recession probabilities rise, financial markets could take another turn for the worse, with speculative assets like meme coins potentially being the first to feel the impact. For long-term investors willing to withstand high volatility, some analysts argue that any major price drop could present a buying opportunity. The current US administration’s pro-crypto stance and the potential for new market liquidity could eventually support a recovery in the broader crypto space, including for major meme coins like Shiba Inu. As SHIB hovers near key technical levels, traders are closely monitoring for a decisive move in either direction.