Shiba Inu Continues Downtrend, Leaving 97.4% of SHIB Holders in Losses
The Shiba Inu (SHIB) cryptocurrency is facing a persistent downtrend, with its price dropping by 5% in the last 24 hours, pushing it further into the demand zone at $0.00000690. On-chain metrics reveal that a significant 97.4% of SHIB holders are currently underwater, holding unrealized losses as the meme coin records lower lows.
Shiba Inu (SHIB) price is trading with a bearish bias, similar to other meme coins like Dogecoin (DOGE), Floki Inu (FLOKI), and Bone ShibaSwap (BONE), all of which are experiencing declines. The entire meme coin community is facing selling pressure, and the exact reason for these losses remains unclear, aside from the broader market downturn, with Bitcoin also showing weakness.
The increased selling pressure may cause Shiba Inu’s price to fall below the equal lows at $0.00000690 and into the demand zone where bulls are expected to provide support. If this support fails, SHIB could slide further, potentially breaking below the lower boundary of the demand zone at $0.00000650, indicating a prolonged downtrend.
Technical indicators, such as the Relative Strength Index (RSI) and the Awesome Oscillator, are showing falling momentum, indicating a bearish takeover. Additionally, the Exponential Moving Averages (EMA) are following the price action, suggesting increased overhead pressure.
Shiba Inu Price Faces Ongoing Downtrend Amid Broader Market Weakness
Data from IntoTheBlock’s Global In/Out of the Money shows that almost all SHIB holders are currently holding unrealized losses, with 97.40% of token holders “out of the money,” 0.12% “in the money,” and only 2.48% breaking even.
Considering this outlook, there are three potential scenarios. First, traders may start selling to avoid further losses as Shiba Inu’s price appears to be in decline. Second, addresses that are currently “out of the money” may wait until they break even before selling, adding to the downward pressure. Third, with more addresses holding unrealized losses than those in profit, selling pressure may remain low as traders take a long-term approach.
In a recovery scenario, Shiba Inu’s price could rise to challenge the 50- and 100-day EMAs at $0.00000815 and $0.00000838, respectively, before possibly reaching the resistance confluence between the horizontal line and the 200-day EMA at around $0.00000901.
It’s essential to remember that the cryptocurrency market is highly volatile, and these scenarios are based on current data and speculation. Risk management is crucial when investing in cryptocurrencies.