As most Shiba Inu (SHIB) holders are currently at a loss, the popular meme coin is experiencing tough times. Recent data from IntoTheBlock shows that 59% of token holders are 'underwater.'
This means that they hold tokens at a price above the current market value. The data also shows that only 4% of them are at breakeven, while 37% are making a profit.
This indicates a challenging period for Shiba Inu, considering that in 2021 the token significantly increased in price.
Trading activity and community engagement are declining.
At the time of writing, the price of SHIB is $0.000013, which is 0.71% lower than the previous day, according to CoinMarketCap data. Over the past 24 hours, trading volume has decreased by 2.61% to $133.6 million.
Earlier today, U.Today reported that the total transaction volume with this token increased from 1.8 trillion to 7.37 trillion SHIB tokens. This figure, which shows how many tokens were bought and sold over the past day, indicates that SHIB is being traded by fewer people compared to previous days.
The downward trend of the token's price is confirmed by the decrease in community activity. Over the past week, the number of Telegram subscribers has decreased by 0.38%. This figure is a key indicator of activity and investor interest in crypto projects.
Thus, this decline suggests that some holders may be losing trust in the token or interest in it in the short term. However, the long-term trend indicates that holders believe in the token's future: 78% of SHIB holders have owned their tokens for over a year.
Interest from new investors in Shiba Inu is cooling off.
At the same time, interest in Shiba Inu appears to have significantly decreased over the past month, as only 2% of SHIB holders have become new investors in this token during this period. Meanwhile, SHIB is closely correlated with Bitcoin: the correlation coefficient is 0.84 out of 1.0.
This shows that it moves in the same direction as BTC, regardless of whether it is rising or falling. Data from IntoTheBlock also showed that over the past seven days, the volume of large SHIB transactions reached $184.96 million, indicating that the token is still in demand among institutional investors and wealthy individuals.
This proves that institutional interest in the token remains high, even though retail investor interest is declining. Any upward price trend for SHIB will depend on whether it separates itself from the overall market decline or if the Shiba Inu ecosystem gains wider adoption.
https://cryptonews.net/en/news/altcoins/30912874/