Shiba Inu holders show confidence despite declining network activity

Shiba Inu (CRYPTO:SHIB) has experienced a nearly 50% drop from its yearly high of $0.000035, placing the meme coin in a challenging position as market attention shifts to other cryptocurrencies. 

Despite this price decline, SHIB's holders are demonstrating strong mid-term confidence. 

Data from IntoTheBlock shows that Shiba Inu's Coin Holding Time has increased by 42% over the past seven days and by 107% over the last 30 days. 

The Coin Holding Time metric indicates how long holders keep an asset without transacting or selling it. 

An increase suggests growing confidence in the asset's potential. 

For SHIB, this longer holding period could help provide some price stability. 

Despite the extended holding times, Shiba Inu’s network activity has been on the decline. 

The number of active addresses, which measures user engagement on the blockchain, has decreased over the past week. 

This reduction in active addresses, along with a drop in new addresses and those with zero balances, indicates lower interaction and participation with SHIB. 

This decline suggests that new investors may be looking at other cryptocurrencies. 

The contrasting trends of increased holding time and reduced network activity create uncertainty for SHIB’s price movement. 

While the longer holding period might offer stability, the lack of active engagement could limit its growth potential. 

Technically, SHIB recently broke out of a descending triangle pattern on August 23, leading to a brief price increase to $0.000016. 

However, this upward movement was followed by a 14% decline, suggesting a potential false breakout. 

If the bullish momentum resumes, SHIB could aim for $0.000014, but weak buying pressure may result in sideways trading. 

Conversely, if selling pressure mounts, SHIB's price could see a more significant correction, potentially falling to $0.000010. 

At the time of reporting, the Shiba Inu price was $0.00001409.