Shiba Inu price has remained on edge this month as the recent bullish momentum faded. Its daily trading volume and futures open interest have retreated, a sign that its demand has reduced. So, is SHIB still a good coin to buy?
SHIB is seeing weak metrics
Third-party data shows that Shiba Inu’s ecosystem is not doing well. Data by ShibBurn shows that the burn rate dropped by 99.84% to just 112,182 coins on Monday. While millions of tokens are being burned every month, there are signs that the momentum has faded in the past few months.
Shiba Inu’s volume has also been in a strong downtrend. Data by CoinGecko shows that its 24-hour volume was about $604 million. In contrast, Dogecoin, the biggest meme coin, had a 24-hour volume of over $2.97 billion.
Pepe, which is smaller than Shiba Inu, had a 24-hour volume of $1.7 billion, and Floki had $1 billion. These numbers mean that SHIB is losing traction in the crypto-memecoin market.
The same trend is happening in the futures market, where open interest has been in a freefall. After rising to $184 million a few weeks ago, the figure has dropped to $95 million.
Additionally, social media mentions on Shiba Inu have continued falling in the past few weeks, implying that interest in the coin has waned. While not all that good, these metrics often happen before a cryptocurrency bounces back.
Read more: Can the Shiba Inu Price Jump by 80% By Jan 1?
Shiba Inu price has strong technicals
The daily chart shows that the SHIB price has strong technicals. Indeed, the ongoing wavering is happening for a reason since the coin recently rose to $0.00003293, its highest swing on March 28. The retreat is part of the formation of the handle section of the cup and handle pattern.
A C&H pattern forms when an asset finds strong resistance at a crucial level and then consolidates. It also has a rounded bottom, which, in this case, bottomed at $0.00001085.
Shiba Inu has also formed an ascending channel connecting the lowest and highest swings since August. It has just moved slightly above the lower side of this channel.
Also, it has been supported by the 50-day and 100-day moving averages and found support at the Major S&R pivot point of the Murrey Math Lines.
Therefore, there are rising odds that the coin will soon bounce back and initially rise to the upper side of the cup at $0.00003293. It will then rise to the year-to-date high of $0.000045, which is about 67% above the current level.
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