Shiba Inu (SHIB) has recently hit a two-month low in holder confidence, reflecting a bearish sentiment in the market with signs pointing to a potential further drop ahead. Key factors contributing to this decline include:
Price and Holder Sentiment: SHIB recently lost key support near $0.0000125 and is trading around $0.0000119, marking almost a 20% drop from July highs. The decline signals weakening investor confidence and increased selling pressure.
Lower New Wallet Activity: On-chain data shows a 40% decline in new wallet activity, indicating fewer new buyers entering the market. This drop in retail interest suggests waning enthusiasm among potential new investors, which is important for sustaining rallies.
Token Burns Stalling: Despite aggressive recent token burn campaigns aiming to reduce supply, these have failed to reverse the bearish momentum. Token burns are down roughly 50%, reducing their impact on price support.
Whale Activity: Some large holders have sold portions of their SHIB holdings recently, including a $6 million sale, though significant whale holdings remain, which might provide some base support for the price.
Technical Indicators: Key technical resistance levels around $0.0000130 to $0.0000150 continue to cap upward moves, with momentum indicators such as the RSI below neutral levels, signaling weak short-term buying interest.
Market Context: SHIB’s current weak performance reflects broader challenges faced by meme coins and altcoins amid macroeconomic uncertainties, including trade tensions and inflation concerns that drive investors toward safer assets like Bitcoin or gold.
Mixed Outlook: While some optimistic scenarios suggest a potential 25% rally could occur by early September, current technical and sentiment indicators lean bearish, warning investors that it may not be the best time to buy for now.
In summary, Shiba Inu holder confidence is at a two-month low due to shrinking new buyer interest, stalled token burns, and bearish technical signals, which combined point toward a likely continuation of downward pressure in the near term. However, a loyal core community and whale activity may provide some support against a sharper collapse.
If you follow SHIB, watch for key support around $0.000010 and resistance near $0.000013. Keep an eye on trading volumes and whale moves as signals for possible trend shifts.
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