Shiba Inu price remains in a freefall, with bulls remaining in the sidelines for now. Its social sentiment score has fallen as demand has largely disappeared. Still, SHIB price may rebound soon as it becomes oversold and as the number of Shibarium transactions soar.
Shiba Inu Price Crash and Falling Active Addresses
The ongoing SHIB price crash has pushed many traders and speculators away. According to IntoTheBlock, the number of daily active addresses has crashed by 23% in the last seven days. Similarly, active addresses fell by 32%, while zero balance addresses have fallen by over 50%.
Another data shows that Shiba Inu whales have not dumped their tokens so far. Instead, they hold about 58% of all tokens in circulation. One SHIB whale bought 275 billion coins on Tuesday, a sign of confidence that the price will rebound.
It is not uncommon for retail traders to sell a coin when its price drops. In some cases, whales take advantage of this distribution to accumulate more tokens. The same happens when social media sentiment of a coin falls.
Rising Shibarium Transactions Could boost SHIB
The other potential catalyst for the Shiban Inu price is that the Shibarium network is doing well. Data by ShibariumScan shows that the number of transactions in the network has jumped sharply in the past few months. It crossed the 800 million milestone earlier this month and has now jumped to over 863 million.
This growth means that the number of transactions will rise and get to 1 billion in the first quarter. Shibarium’s total addresses have already jumped to over 2.01 million, a figure that may keep rising.
A vibrant Shibarium ecosystem is a good thing for Shiba Inu because it has a positive influence on the SHIB token burns. Shibarium’s transactions are in BONE, part of which are converted into SHIB and burned.
Shiba Inu Price Is Getting Oversold
Technicals suggest that the SHIB price is about to become oversold. The Relative Strength Index (RSI) is one of the most popular indicators of whether an asset is oversold or overbought.
It has dropped from the November high of 82.7 to 36. This means the RSI may get into the oversold point at 30 soon. Shiba Inu got into the oversold point lastly in August last year, and the token soared by over 200% afterwards.
SHIB Coin Price Targets
On top of this, Shiba Inu price has slowly formed a falling wedge pattern that is nearing its confluence level. This pattern points to a potential comeback, with the next point to watch being at $0.00003325, its 2024 high, which is 80% above the current level.
The bullish SHIB price forecast will become invalid if the coin drops below the support at $0.000016 since that one will invalidate the falling wedge pattern.
The post 3 Reasons Shiba Inu Price Can Recover 80% in February appeared first on CoinGape.
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