Amid Bitcoin's recent rally to an all-time high of $73,600 in March, the meme coin market has become the most lucrative sector of the market, offering average returns of over 1,300% among major tokens by market capitalization. However, with the price of Bitcoin retreating to the $60,000 level, traders are now turning their attention to the potential gains of the meme coins. Notably, SHIB is showing significant signs of activity, creating hopes for a bullish turnaround amid negative metrics.
Shiba Inu Open Interest Declines Amid Consolidation
Traders on both sides are suffering significant losses, with Coinglass reporting a total of over $600,000 in positions liquidated. Additionally, interest in Shiba Inu trading has declined noticeably, with its open interest falling from a high of $138 million to just $53 million, indicating a slowdown in market activity and resulting in a less fluctuation in SHIB prices.
Data from IntoTheBlock shows that Shiba Inu established critical support at $0.00001, with prices ranging between $0.000008 and $0.000014. Around 400,000 addresses have acquired 244 trillion SHIB tokens. It is worth noting that exactly 397,000 addresses currently hold approximately 244 trillion SHIB at an average price of $0.00001, which could provide strong support to prevent the price from falling below this level.
The current trend suggests a potential rebound for SHIB, especially as its blockchain, Shibarium, shows positive indicators. Shibarium saw a remarkable 160% increase in the last 24 hours, highlighting a recovery in key metrics. Data from Shibariumscan reveals that transactions on the network increased from 352,000 earlier in the day to 562,980 during the period under review. This increase in activity comes after a significant decline two days prior, when transactions fell 63.2% from a peak of 958,500.
Therefore, since its inception in August 2023, Shibarium has processed a staggering 415 million transactions. Furthermore, the number of user accounts has increased significantly, now representing 1.782 million addresses. This could reinforce the current dominance of buyers among SHIB holders.
What’s next for the SHIB price?
Shiba Inu has been oscillating within a narrow range of symmetrical triangles over the past three days, suggesting balance in buying and selling activity at these price levels. However, buyers aim to send the price above the descending resistance line. At the time of writing, SHIB price is trading at $0.0000226, up over 2.1% in the last 24 hours.
The bulls are trying to push the price above the EMA100 trendline and a break above the current downtrend line could signal that the bearish momentum is waning. This could send the pair higher to $0.000028, where it will likely encounter substantial resistance from the bears.
The bears are poised to challenge support again at $0.000021. A breakout of this level could trigger intensified selling, potentially plunging the SHIB/USDT pair sharply towards the next important support at $0.000019, erasing all gains from the last rally phase.