Shiba Inu Active Addresses Drop 61% Despite Brief Rally: What's Happening to SHIB?

Shiba Inu (SHIB) experienced a brief price rally followed by a sharp reversal on May 21, as on-chain data revealed bearish whale activity and weakening market participation. Despite this flicker of hope, Shiba Inu is facing bearish momentum, with its burn rate dropping over 100% in a week, active addresses declining, and increased selling pressure driving a 13% weekly price fall.

Shiba Inu Network Activity Plummets

Adding to Shiba Inu price risks a massive drop as a decline in the number of daily active addresses indicates waning network activity. This decline often suggests reduced interest and confidence in the meme coin. The network activity of Shiba Inu just hit its lowest point this year, with new addresses dropping 62% as traders focus more on emerging platforms. Shiba Inu's network activity plunges as new addresses drop 62%.

61% Drop in Active Addresses Signals Trouble

Data from IntoTheBlock shows a 61% drop in whale activity, with large holders showing less participation. This sharp decline in active addresses is a major cause for concern. This decline often suggests reduced Shiba Inu (SHIB) is under renewed selling pressure, reflecting a decline in large transactions.

Price Below Key Trend Lines

Declining trader interest pushes SHIB below key trend lines. The drop in active addresses further reinforces this bearish sentiment.

Despite Losses, Some Still in Profit

Despite SHIB collapsing to the $0. psychological support, over 16% of its active Shiba Inu addresses are still seeing profits on their holdings. Shiba Inu is currently facing a challenging market environment.