Is Shiba Inu (SHIB) in Critical State? All Indicators Are Bearish

As a seasoned researcher with years of experience navigating the volatile world of cryptocurrencies, I must admit that the current state of Shiba Inu (SHIB) leaves me feeling a bit like a dog chasing its tail. The on-chain indicators are flashing red, and it seems the wind is not in our favor.


The bearish signs on the blockchain suggest potential troubles for the meme-inspired cryptocurrency Shiba Inu, as it finds itself in a precarious situation at present. Despite efforts to recover and regain some ground near the $0.000014 level, SHIB has struggled to generate significant positive movement.

A thorough analysis of the on-chain data paints a grim scenario for SHIB. To begin with, it is troubling to note that only a minimal number of SHIB holders are currently making a profit given the current price. It’s clear that many investors are experiencing losses, with approximately 52% of them currently underwater (or ‘out of the money’). The lack of profits among holders often leads to increased selling pressure due to their potential attempts to cut losses, which in turn can lower the price further.

Is Shiba Inu (SHIB) in Critical State? All Indicators Are Bearish

Additionally, a slight drop of 0.21% indicates that the network growth is showing a bearish trend, suggesting a potential deceleration in the number of new users joining the SHIB community. This could potentially hinder any upcoming recovery. The price of the token tends to decrease when the user base shrinks because there’s typically less interest in the token and fewer transactions occurring.

A significant indicator, “big transactions,” has decreased by 4.95%. Typically, this statistic serves as a gauge for ‘whale’ activity, and at the moment, it seems these large investors may be absent from SHIB. This reduction could indicate that major investors are either withdrawing or reducing their involvement with SHIB.

To put it simply, with four out of five key measures showing a downward trend, the overall feeling towards SHIB is predominantly negative. This gloomy perspective is based on the current market sentiment and on-chain activity, both of which suggest that Shiba Inu may encounter ongoing challenges in the near future.

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2024-08-09 13:40