Shiba Inu (SHIB) Struggles as Majority of Holders Remain in the Red

Shiba Inu (SHIB) Struggles as Majority of Holders Remain in the Red

Shiba Inu (SHIB), one of the most recognized meme coins in the cryptocurrency space, is facing headwinds as the majority of its holders continue to sit on unrealized losses. According to the latest insights from blockchain analytics firm IntoTheBlock, 59% of SHIB holders are currently “out of the money,” meaning they purchased the token at prices higher than its current value.

Only 4% of SHIB holders are at break-even, while 37% are in profit. These figures reflect a challenging phase for the once high-flying token, which enjoyed explosive gains during the 2021 bull run.

Dwindling Activity Highlights Investor Fatigue

At the time of reporting, SHIB is trading at $0.000013, marking a 0.71% decrease over the past 24 hours, as per CoinMarketCap. The 24-hour trading volume has also dropped by 2.61% to $133.6 million, pointing to a general cooling off in trading enthusiasm.

Interestingly, although U.Today earlier noted a spike in SHIB’s transaction volume—from 1.8 trillion to 7.37 trillion tokens—this increase doesn’t necessarily signal bullish sentiment. Instead, it suggests elevated activity possibly due to short-term trades rather than sustained investment interest.

Adding to this bearish outlook is a decrease in community engagement. SHIB’s Telegram channel saw a 0.38% decline in membership over the past week, an indicator that some retail investors may be losing interest or confidence in the token’s short-term prospects.

Long-Term Holders Still Show Conviction

Despite these negative signals, a significant portion of SHIB holders remain committed for the long haul. Data shows that 78% of SHIB investors have held their tokens for more than a year, underlining a belief in the project’s long-term potential.

However, new investor interest appears to be waning. Only 2% of SHIB holders have entered the market within the last 30 days, a stark contrast to the frenzy observed during the token’s peak popularity.

Institutional Interest Remains Steady

While retail sentiment appears to be fading, institutional and high-net-worth activity remains robust. Over the past week, large transaction volume for SHIB reached $184.96 million, hinting that major players are still active in the market.

SHIB’s strong correlation with Bitcoin, measured at 0.84, means its price trajectory continues to mirror broader market movements. Any meaningful recovery for Shiba Inu will likely depend on either a market-wide rebound or increased utility and adoption within the SHIB ecosystem.