Shiba Inu (SHIB) holders have not been immune to the market turbulence of recent weeks. An analysis of the current status of meme coin holders reveals that the profitability of investing in this particular asset type has been a rollercoaster ride.
Data derived from IntoTheBlock, an analytics company, reveals a remarkable fact: Only 9% of current SHIB holders are in a profitable position at the current value of approximately $0.0000069 per token. This number is indicative of the challenges many SHIB investors are currently facing.
Furthermore, an additional 1% are at the break-even point, while a staggering 91% are faced with the harsh reality of experiencing a total loss.
One of the main factors contributing to this fluctuating landscape of profitability is the undeniable influence of Shiba Inu's price volatility and the composition of its holder base. In recent months, the market value of SHIB has been subject to dramatic fluctuations, largely due to significant trading volumes. This volatility has undoubtedly played a crucial role in shaping the current financial situation of SHIB holders.
It is also worth noting that an overwhelming 78% of the circulating SHIB supply is concentrated in the wallets of so-called "whale" holders, underscoring the significant influence of a few key players within the SHIB ecosystem.
The price crash of Shiba Inu, an incredible decline of 92% from its all-time high of $0.00008616 in October 2021, has put many investors who bought at or near the peak in a precarious position and led to significant losses. On the other hand, those who entered the market at relatively lower prices may be experiencing positive returns on their investments.
At the time of writing this article, the price of SHIB is $0.00000700, representing a 1.2% increase in the last 24 hours, although still showing a 1.0% loss over the past seven days.
Despite the obvious challenges faced by SHIB holders, a glimmer of hope emerges from the analysis of price movements. It is apparent that every significant decline in the value of SHIB is followed by a recovery phase, seemingly creating a recurring "zigzag" pattern. This pattern indicates a healthy correction process, a natural phenomenon in the cryptocurrency markets. It speaks to the resilience of SHIB and its ability to bounce back from adversity, offering a glimmer of optimism amidst prevailing uncertainty.
Furthermore, the current market dynamics suggest that SHIB is facing a local resistance level, which poses a formidable challenge to its upward trend. The interplay of reduced activity among whale holders and the ongoing struggle to overcome this resistance level suggests that an upward trend may be on the horizon if SHIB manages to break through this barrier.
(The content of this website should not be understood as financial advice. Investing carries risks. When you invest, your capital is at risk.)
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