Majority of Shiba Inu (SHIB) Investors Maintain Long-Term Holdings Despite Price Decline
Shiba Inu Spiriting Down: Low Trading Volume and Waning Interest
In the cryptocurrency arena, Shiba Inu (SHIB) is battling some stormy times. More than half of the token's holders are in the red, displaying a whopping 59% as "out of the money" in the latest IntoTheBlock data. Here's the gist.
Not So Profitable for Shiba Inu
These figures indicate a rough patch for Shiba Inu, given the remarkable rises it enjoyed in 2021. Sadly, a measly 4% of the holders are in break-even, while a slightly more positive 37% remain profitable.
Let's break down the current situation:
The Price Dilemma
At press time, the price of SHIB hovers around $0.000013, dipping 0.71% in the last day, based on CoinMarketCap data. There's also a 2.61% downturn in daily trading volume, currently resting at $133.6 million.
Recently, U.Today reported an increase in the total transaction volume for SHIB, rising from 1.8 trillion to 7.37 trillion SHIB tokens. While that's a positive sign, it implies reduced trading activity compared to recent days.
Losing Steam
The token's slide is further confirmed by a drop in community engagement, with a 0.38% decrease in Telegram membership over the past week. This metric serves as a crucial indicator of activity and investor interest in crypto projects, hinting at waning short-term interest in SHIB.
However, long-term optimism persists, as 78% of SHIB holders have held their tokens for over a year.
No Fresh Blood
Meanwhile, fresh investments into Shiba Inu appear to have significantly cooled off over the past month, with only 2% of new investors entering the crypto. On the bright side, SHIB has a strong correlation with Bitcoin (score 0.84 out of 1.0), meaning it mirrors the king coin whether climbing or falling.
The latest data from IntoTheBlock also highlights a large transaction volume of $184.96 million for SHIB over the past week, demonstrating continued institutional or high-net-worth activity.
Expected Upward Swings
While the token's current descent might be unsettling, an upward trend in SHIB's price could be influenced by two variables:
- If the token manages to break free from the broader market downtrend, it may rally on its own.
- Increased adoption within the Shiba Inu ecosystem could add fuel to its flames.
In short, Shiba Inu is facing some turbulence in the crypto market, but with long-term optimism among holders, the opportunity still exists for successful maneuvering in the flowery, yet competitive, world of digital currencies.
- Despite the losses incurred by more than half of the Shiba Inu (SHIB) token holders, the token still shows a correlation with Bitcoin, mirroring its movements as the king coin climbs or falls.
- The trading volume of Shiba Inu started to rise recently, however, it implications reduced trading activity compared to the previous days, with the daily trading volume decreasing by 2.61% to $133.6 million.
- In addition to the trading concerns, the Shiba Inu community engagement is also falling, with a 0.38% decrease in Telegram membership over the past week, which indicates a waning short-term interest in the token.
- As a sign of the current situation, IntoTheBlock data indicates that only 4% of SHIB holders are in break-even, while a slightly more positive 37% remain profitable, which is indicative of the rough patch for Shiba Inu.
- Despite the current downward trend, the opportunity for successful maneuvering still exists in the crypto market for Shiba Inu, as an upward trend in the token's price could be influenced by the token breaking free from the broader market downtrend or increased adoption within the Shiba Inu ecosystem.
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