Shiba Inu has been trading underwater for months now, with most of its holders currently in the red.
Despite 59% of traders being in the red, nearly 80% of these holders have held their tokens for more than a year.
SHIB still has a strong correlation to Bitcoin as a result, any strongly bullish movement from Bitcoin will inevitably result in the same for SHIB.
According to recent insights from analysts, SHIB could be in for a 10x to 15x rally towards $0.000081.
Shiba Inu has been trading underwater for months now, with most of its holders currently in the red.
The cryptocurrency has also seen a visible drop in community engagement, as the memecoin hype has cooled off somewhat.
However, under the surface, a different story could be playing out. Long-term holders, technical indicators, and on-chain activity are starting to flash signals that SHIB might have bottomed out already and is ready for a price breakout.
Data from IntoTheBlock shows something interesting indeed. According to the blockchain data tracking resources, a discouraging 59% of SHIB holders are currently “out of the money.”
This means that these holders bought the token at a higher price than its current market value. Moreso, only 4% are at break-even, while 37% are in profit.
Shiba Inu token holders trading in red | Source: IntoTheBlock
Yet despite this large amount of traders in loss, SHIB seems to have a truly loyal investor population.
Nearly 80% of these holders have held their tokens for more than a year, and such long-term conviction shows that these investors have a strong belief in SHIB’s future rather than its short-term speculation.
While the long-term holders are holding fast, recent trading metrics still show that SHIB might be cooling off.
For example, the cryptocurrency’s trading volume fell by nearly 3% to $133 million recently.
The price of the cryptocurrency has also dropped by around 1% and is trading around $0.000013 at the time of writing.
Shiba Inu’s current performance
Shiba Inu’s community engagement isn’t as strong as it used to be either. For example, its Telegram group membership score has dropped by around 0.5% over the last week.
All of the above means that while existing investors are standing their ground, new buyers are discouraged from getting in on the action.
Despite the retail slowdown, SHIB is still quite attractive to high-net-worth investors. IntoTheBlock data shows that the volume of large transactions reached nearly $200 million.
These transactions are usually associated with whales and show that while the retailers are stepping back, the big players are still watching and making moves.
Moreover, SHIB still has a strong correlation to Bitcoin, which currently sits at around 82%.
As a result, any strongly bullish movement from Bitcoin will inevitably result in the same for SHIB.
The last 7 days have even seen more than 300 million SHIB burned, according to ShibBurn.
The SHIB supply is reducing and in turn, the token’s circulating supply is becoming more scarce.
This could work hand in hand with demand and lead to steady price growth.
Despite the ongoing lull in SHIB prices, several analysts believe that the cryptocurrency could be on the verge of a breakout.
According to recent insights from crypto influencer Illusion X, SHIB could be in for a 10x to 15x rally.
Analyst Javon Marks thinks so as well, and predicted a bullish SHIB rise towards $0.000081.
According to Marks, SHIB has successfully retested its breakout level around $0.0000108 after a rally to $0.00003329 in December of last year.
Because of this, the retest confirms a strong macro structure, and as long as SHIB stays above that support level, a rally is inevitable.
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