Shiba Inu celebrated its fourth birthday this week, but the price declined, contrary to analyst expectations.
Despite the price drop, Shiba Inu's exchange supply is decreasing, which shows reduced selling pressure.
The number of large Shiba Inu transactions has also increased, and we might be seeing more investor interest.
Shiba Inu is currently testing the base of a descending triangle on its price chart.
A sustained break above the triangle's resistance could lead to a 200% price rally for Shiba Inu, towards $0.00004567.
Shiba Inu, the second largest memecoin in the world, was launched in August 2022 by an anonymous developer called "Ryoshi".
Shiba Inu was launched during the heat of the COVID pandemic and within the same year earned widespread popularity after donating half of its total supply to Ethereum Creator Vitalik Buterin.
Four years later, the cryptocurrency's price has exploded by a staggering 19 million percent, despite being down by 82% from its all-time high.
Shiba Inu’s price performance
Shiba Inu's market cap has also grown to a high of $37 billion, despite declining between 2021 and now to $9 billion at the time of this writing.
It also happens that Shiba Inu's birthday was this week.
Let's review what's currently going on with SHIB and how investors have reacted to its special day.
Shiba Inu is down by around 5% on the weekly timeframe, which is interesting to note, considering its birthday week.
This decline came right after the official Shiba Inu Twitter page announcement, suggesting that the market may not have reacted positively to the event.
So what happens next with SHIB, and what should investors be on the lookout for?
To start with, despite the ongoing decline in the cryptocurrency’s price, we are seeing something interesting in its exchange supply.
Data from Santiment, in particular, shows that the Shiba Inu exchange supply (red line) has declined by over 5% between June and August.
Shiba Inu’s exchange supply
This means that selling pressure on the cryptocurrency is declining, with investors pulling more SHIB off exchanges.
There has also been an increase in the number of transactions greater than $100,000 lately, from 29 on 31 July to an impressive, almost triple-value of 74, according to data from IntoTheBlock.
IntoTheBlock token summary
Shiba Inu’s fourth birthday celebration didn’t cause a spike in its price as many investors must have hoped.
However, the ongoing reduction in its exchange supply and the increasing number of whale transactions are promising signals.
Shiba Inu’s road ahead
The cryptocurrency is attempting to test and rebound from the base of the descending triangle. As long as a sustained break below $0.00001456 - $0.00001266 doesn't occur, we are bound to see a recovery and breakout.
Better days are coming for SHIB, with a 200% rally to $0.00004567 in the works.
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