Shiba Inu breaks on-chain wallet record as price rebounds
- Shiba Inu defends critical $0.00001188 support, igniting a rebound alongside major cryptocurrencies.
- Shiba Inu's protocol breaks a new record, with over 1.5 million on-chain wallets now holding SHIB.
- SHIB's uptrend could stall under $0.000013, where approximately 22,400 addresses previously purchased 17.52 trillion coins.
Shiba Inu (SHIB) appears to be extending its recovery from the support level of around $0.00001188, which was tested on Thursday. The meme coin hovers at around $0.00001253 at the time of writing on Monday, up almost 6% since it lifted from its support level. This bullish outlook follows a significant improvement in network activity, with the number of on-chain wallets hitting a new record high.
Market overview: Crypto market recovers slightly awaiting US-China talks
The announcement of the second round of trade talks between the United States (US) and China, scheduled to take place in London on Monday, has sparked a lukewarm recovery in the broader cryptocurrency market, led by Bitcoin's (BTC) uptick above $107,000.
Although relatively lethargic, altcoins such as Ethereum (ETH), Solana (SOL), and Hyperliquid (HYPE) show signs of extending their gains in upcoming sessions. Leading meme coins, including Dogecoin (DOGE) and SHIB, are paring losses, pointing to a potential rally this week.
Shiba Inu hits major milestone with wallets holding SHIB exceeding 1.5 million
Shiba Inu's network has hit a new historical high, with the number of on-chain wallets holding SHIB reaching 1,510,424. Wallets holding SHIB have continued to grow despite the price fluctuating, indicating that investor confidence in the ecosystem and the future of the meme coin remains strong.
Shiba Inu network stats | Source: Etherscan_SHIB
An increase in wallets holding SHIB translates to expanding adoption and growing demand. If this demand persists, Shiba Inu's price could steady the recovery after falling to $0.00001188.
A 3.66% increase in Shiba Inu's derivatives market Open Interest (OI) to approximately $156.50 million mirrors the growing demand for the token. The trading volume surged over 26% to around $117.43 million, according to CoinGlass data, which reinforces the bullish outlook amid heightened market activity.
Shiba Inu derivatives market OI | Source: Tradingview
Technical outlook: Shiba Inu poised for a breakout above $0.00001300
Shiba Inu's price hovers at around $0.00001253 at the time of writing, amid slight gains on the day. The recovery from support, tested at $0.00001188, eyes a breakout above resistance at $0.00001300 and a subsequent move to key levels at $0.00001419 and $0.00001557, which represent the 100-day Exponential Moving Average (EMA) and the 200-day EMA.
Traders looking to capitalize on the recovery would watch out for a buy signal from the Moving Average Convergence Divergence (MACD) indicator. This signal manifests with the blue MACD line crossing above the red signal line. For now, a sell signal flashed on May 17 still holds, which may curtail the recovery in upcoming sessions.
The Relative Strength Index (RSI) uptrend toward the 50 midline backs SHIB's ongoing recovery. Movement toward the overbought level would go a long way to ascertain the uptrend's strength.
SHIB/USD daily chart
IntoTheBlock's In/Out of Money Around Price (IOMAP) on-chain model directs traders to focus on the robust resistance zone around $0.00001300. Here, approximately 22,400 addresses previously purchased 17.52 trillion SHIB.
Shiba Inu IOMAP model | Source: IntoTheBlock
As Shiba Inu recovers, some investors in this cohort may decide to sell at break-even, thus contributing to overhead pressure. Potential profit-taking and changes in the macroeconomic environment could impact the performance of Shiba Inu, potentially resulting in a trend reversal toward the April low of $0.000011029.
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
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