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This Coin Is Surging in December After Lying Dormant in November

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Shiba Inu Price Prediction - Profit-taking Stalls Rally, Why Tamadoge is a better Buy, up 20%
Shiba Inu Price Prediction - Profit-taking Stalls Rally, Why Tamadoge is a better Buy, up 20%

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Shiba Inu (SHIB) has been trading in a tight range between $0.00000889 and $0.00000946 since November 23 with no directional bias. The decentralized coin has been unable to mount any significant recovery as the market continues to reel under the effects of the Sam Bankman-Frieds’a crypto empire collapse. However, despite the drab price action, Shiba Inu is attracting investor interest as shown by the increasing number of SHIB holders. 

According to data from Etherscan, there are 1,258,661 SHIB holders as of December 12, 7,424 holders more than the 1,251,237 recorded at the start of December. This means that there has been an average increase of 618 new holders daily since the start of the month.

This growing interest in the “DOGE killer” was validated by data on SHIB holdings from CoinMarketCap. According to the chart below showing the total number of unique addresses that hold tokens on the Shiba Inu network, SHIB has experienced a massive increase of more than 9,780 holders in the month of December. This averages an increase of 900 holders per day.

Indeed, Shiba Inu’s total addresses have been on a steady ascent over the last 90 days, peaking at 1,284,709 on November 24. There was a major dip between November 24 and 29, when the network lost close to 34,919 holders

According to the data, the number went from 1,284,709 to 1,249,790 between November 24 and 29, representing a 2.72% drop.

Shiba Inu Total Addresses

Shiba Inu Holders
Source: CoinMarketCap

This number then started increasing to the current level, representing a 7.8% increase over the past 11 days. 

However, this increase in the number of unique addresses holding the asset on the Shiba Inu network is inconsistent with the number of transactions on the network. According to on-chain data from IntoTheBlock, the number of on-chain transactions of the Shiba Inu token has been on a downward pattern over the past month. Between November 28 and December 11, this number went down from 16,770 to 4,210.

Shiba Inu Price At Risk Of More Losses

Shiba Inu price is trading in a fourth consecutive session at $0.00000883 as shown on the daily chart (see below). The meme coin is down 4% on the day and 9.8% over the last seven days. SHIB price has traded mainly in the negative in December, with the altcoin struggling to find a launchpad that would initiate an uptrend. 

Shiba Inu has been trading inside a tight range defined by the $0.00000874 support line and the resistance level at $0.00000946. At press time, the token struggled to hold above the range’s support line. A daily candlestick close below the said level would see SHIB drop below the $0.0000085 psychological level to revisit the $0.00000817 swing low.

SHIB/USD Daily Chart

Shiba Inu Price Chart
TtradingView Chart: SHIB/USD

This pessimistic outlook was validated by the fact that SHIB traded below the moving averages which provided a stubborn barrier between the $0.00001 and the $0.000011 supply zone which would stifle any efforts to push the price past the said level. 

Additionally, the Relative Strength Index (RSI) was facing down, a suggestion that the market favored the downside. The price strength at 40 suggested that the bears had taken control of the Shiba Inu price. 

On the upside, SHIB needed to rise back above the $0.00000946 resistance line to kickstart an uptrend. If this happens, the token may rise first toward the 50-day simple moving average (SMA) at $0.000010, the 100 SMA at $0.0000105 and the 200-day SMA at $0.000011. Overcoming these barriers could clear the way for SHIB’s ascent to the $0.00001285 resistance level, representing a 45% climb from the current price.

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