Shiba Inu (SHIB), the Ethereum-based meme coin, has been garnering attention recently due to a confluence of factors. Here’s a breakdown:

Shiba Inu Community-Driven Optimism

Key figures like Lucie (SHIB’s marketing lead) and Ragnar Shib (team member) highlighted SHIB’s developments:

• A staggering 266% growth in addresses holding SHIB in under a year.
• Strong community support and burn mechanisms.
• Integration into Shibarium, an L2 solution.
• An upcoming “easter egg” NFT event on Shibarium to boost user engagement.

These developments fueled a wave of market optimism for SHIB.

SHIB Price Rise and Community Recognition

SHIB’s price surged 3.81% in the past 24 hours, riding the wave of optimism. A WazirX poll (on platform X) concluded SHIB has the largest meme coin community, adding to the positive sentiment.

However, Caution is Advised

Despite the price increase, on-chain data suggests a different story:

• The total amount of SHIB held on exchanges has fallen to its lowest since March 2022, potentially indicating a decline in selling pressure.
• But, this could also be due to the recent market downturn, leading to increased bearish activity.

Technical Analysis of SHIB/USD

Bull Case

Rekt Capital, a crypto analyst, suggests SHIB might be mirroring its 2021 bull run pattern. SHIB is currently retesting its weekly support level of $0.0000279. In 2021, a similar retest preceded a rally to its all-time high.

Bear Case

The MACD indicator suggests a bearish trend with a downward intersection of the MACD line and signal line. Declining Open Interest in SHIB futures suggests traders exiting positions due to bearish sentiment.