With the majority of Shiba Inu (SHIB) holders currently in losses, the popular meme coin is facing challenging times. The latest IntoTheBlock data shows that 59% of token holders are “out of the money.”
This means they are holding the tokens at a price higher than its current market value. The data also shows that only 4% of them are at break-even, while 37% are in profit.
This indicates a tough period for Shiba Inu, given that the token recorded massive gains in 2021.
Trading activity and community engagement decline
At the time of writing, SHIB price is $0.000013, down 0.71% in the last day, according to CoinMarketCap data. The trading volume is down by 2.61% to $133.6 million in the last 24 hours.
Earlier today, U.Today reported that the total transaction volume for this token rose from 1.8 trillion to 7.37 trillion SHIB tokens. This metric, which shows how much of the token is being bought and sold within the last day, suggests that fewer people are trading SHIB compared to recent days.
The token’s downward trend is further confirmed by a drop in community engagement. Over the past week, Telegram membership has dropped by 0.38%. This metric is a key indicator of activity and investor interest in crypto projects.
Hence, this drop suggests that some holders may be losing confidence or interest in the token in the short term. However, the long-term holding trend suggests belief in the token’s future, with 78% of SHIB holders holding their tokens for more than a year.
New investor interest in Shiba Inu cools
Meanwhile, fresh interest in Shiba Inu seems to have cooled significantly over the past month, as only 2% of SHIB holders are new investors into the token within this period. Meanwhile, SHIB has a strong correlation with Bitcoin, with a score 0.84 out of 1.0.
This shows that it moves exactly in the same direction with BTC whether up or down. The IntoTheBlock data also showed that SHIB’s large transaction volume reached $184.96 million over the past seven days, suggesting that the token is still experiencing institutional or high-net worth activity.
This proves that institutional interest in the token is still strong, even though retail interest is cooling off. Any upward trend in SHIB’s price will depend on whether it decouples from the broader market downturn or the Shiba Inu ecosystem gains more adoption.
