Shiba Inu Fundamentals Look Strong, When Will SHIB Price Follow?
April 03 2023 - 9:20AM
NEWSBTC
Despite strong fundamentals, the Shiba Inu (SHIB) price is
currently struggling to leave bearish territory. Since the local
high of around $0.000016 on February 4, all attempts to generate
new upward momentum have failed. Now SHIB may be facing a turning
point. Fundamentals Support The Shiba Inu Bulls At least the
underlying fundamentals provide some hope for the Shiba Inu bulls.
As analyst Ali Martinez pointed out via Twitter, Shiba Inu recorded
its largest increase in daily active addresses in a year at the end
of March. In one day, 35,788 unique SHIB addresses interacted with
the network. Generally, network activity is seen as a bullish
metric that precedes price increases. Also showing a favorable bias
are the SHIB burns. As reported by Shibburn, 6.78 billion SHIB
tokens were burned with 540 transactions in the entire month of
March. Both the absolute number of SHIB destroyed and the
transaction count thus show a significant increase compared to the
previous month of February. Related Reading: Shiba Inu Whale
Accumulates 99 Billion Tokens in Massive Buying Spree In that
month, only 352.21 million SHIB were burned in 128 separate
transactions through community burn initiatives. Overall, the March
burn is the highest since October 2022. 🔥🔥🔥 6,782,788,547 $SHIB
tokens have been burned in the month of March with 540
transactions. #shib — Shibburn (@shibburn) April 1, 2023 In January
2023, 1.12 billion were burned in 223 transactions; in December
2022, 2.072 billion SHIB (in 349 transactions); in November 1.922
billion SHIB (in 381 transactions); and in October, 9.05 billion
SHIB (in 2,433 transactions). SHIB Price At Turning Point A look at
the 4-hour chart of SHIB shows that in the last week of March, the
price was able to break a downward trend that had persisted since
the beginning of February. However, the subsequent upward movement
is not very convincing. Related Reading: Litecoin Surges 13% In
Last 24 Hours, Flips Shiba Inu In Market Cap Despite the earlier
breakout, the Shiba Inu price is struggling to maintain its upward
trajectory. In fact, the SHIB price has failed to break the series
of lower lows. The April 1 high at $0.00001152 was lower than the
March 14 local high. The 1-day chart of SHIB reveals a similar
pattern. At the beginning of February 2023, SHIB managed to
break out of a downward trend that had lasted since August 2022.
However, the price couldn’t maintain its trajectory and fell back
below the trend line a few weeks later. The breakout seen in recent
days also looks rather weak. SHIB bounced off the key resistance at
$0.00001122 and is retesting the trendline today. For SHIB bulls,
it is of utmost importance to defend this trend breakout.
Otherwise, a retest of the local low at $0.0000965 from March 10
could be imminent. Featured image from Shunsuke Ono / Unsplash,
chart from TradingView.com
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