Recent on-chain data reveals a tough period for Shiba Inu (SHIB) investors, with 43% of holders currently at a loss. Only 53% of SHIB investors enjoy profitability, highlighting challenges in the asset’s market trajectory. Profitability metrics, a key reflection of market health, point to growing concerns over SHIB’s performance.
Decline in Large Transactions Signals Weak Momentum
Large transactions involving SHIB have dropped by 60.9% in the past week, signaling reduced activity from whales and institutions. This decline significantly affects bullish momentum, as these players typically drive major price surges. Without their involvement, SHIB’s potential for recovery faces additional hurdles.
Source: CoinMarketCap
Major players control 73% of SHIB’s total supply, leaving the asset prone to sharp price swings. Currently, SHIB trades near the 100-day Exponential Moving Average (EMA), a critical support level.
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A breach of this level could trigger further losses, potentially testing the 200 EMA. On the upside, resistance at $0.000023 remains key. Breaking this resistance might spark bullish sentiment, though current market conditions suggest this is unlikely in the near term.
Slowing Network Growth Raises Concerns
SHIB’s network growth shows troubling signs, with fewer new wallet activations. This indicates declining interest from new investors, a crucial factor for sustaining momentum in speculative markets. Additionally, community engagement on platforms like Telegram has slightly dropped, reflecting waning enthusiasm among supporters.
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SHIB needs a shift in market sentiment to regain stability. Increased whale activity, stronger network growth, or a decisive break above resistance levels could help reverse its fortunes. For now, cautious optimism may be the best approach for SHIB holders.
Investors should closely monitor the $0.000020 and $0.000023 price zones, as these levels could shape SHIB’s near-term outlook.
