Shiba Inu and other meme coins have started falling in line with the depressed markets in recent months. However, the latest data shows that some of the investors are betting on the token. The increase in Shiba Inu address numbers is most likely behind this latest investor interest. Meanwhile, as developments continue to emerge for SHIB, 2 analysts shared their predictions on Twitter.
The number of wallets holding SHIB increased by 40,033
As Cryptokoin.com reported, the number of wallets with SHIB has increased by 40,033 in the last 3 months. Thus, the total number of addresses holding the meme coin has reached 1,221,112. This is 40,033 more than on June 16, when the number of owners increased by 3% to 1,181,079. In fact, the number of addresses was in decline at the beginning of August. However, it managed to increase steadily, adding about 16,876 people last month.
Meanwhile, the increase in the number of owners of SHIB is linked to the asset’s rising price for three months. The price rally came after indications that the overall market had outstripped the bear market. The asset made a price rally in July in line with the market resurgence. Interestingly, SHIB continued to make gains despite the rest of the market posting large sales. So what awaits the price in the near term? 2 analysts replied.
“Shiba Inu is at risk of collapse”
According to the analyst, SHIB seems to be hovering thoughtlessly above the $0.000118 support level. As such, it ranks as a very boring altcoin to trade in a shorter timeframe. In fact, this has been a little over a month for the popular meme coin. The Shiba Inu created a series of marginally sloping highs and lows. Using these lower fluctuations it is possible to draw a support trendline.
Also, the volatility closely coincides with the $0.000118 support level, creating a confluence. SHIB is extremely close to retesting this support. Therefore, it will also provide an opportunity to short-circuit, especially if it breaks to the downside. In such a case, investors should expect the Shiba Inu price to drop 27% to $0.0000093. If that happens, it will be the beginning of the Fair Value Gap (FVG), which extends to $0.0000083. The FVG space continues to be highly unstable.
“Enter SHIB at this level and think long-term”
The short-term outlook is undoubtedly bearish. However, with meme coins like SHIB, investors need to think long-term. According to the analyst, the Shiba Inu price will range from $0.0000083 to $0.000093 after revisiting FVG. At this point, traders’ thoughts will turn to the equal highs formed at $0.0000179.
From the market makers’ perspective, the buy-stop liquidity standing above the equally high levels at $0.0000179 gives an exciting target. Therefore, FVG is a great opportunity for long traders who want to enter the market and wait for the rise. If SHIB retests $0.0000179, it will create a 95% gain.
Lack of volatility causes SHIB price to drop
Unfortunately, with the lack of momentum in the market in general and SHIB in particular, the recent rally quickly faded. Thus, the meme coin has returned to the value we saw earlier. Currently, SHIB is approaching the trendline support level that it has tested many times before. In case of an increase in trading volume, the aforementioned trendline support will act as the basis for another rally. However, this requires more input.
From a technical standpoint, the moving averages on the Shiba Inu are slowly intertwining with each other, indicating a potential increase in volatility in the future. For the past three months, SHIB has been moving in an uptrend with low volatility, with some breakout attempts earlier. Fortunately, the asset has yet to bounce back from this trend or show any signs of testing the 2022 bottom at $0.000007.
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