Bitrabo Editorial
The Shiba Inu dog-themed meme coin is facing challenges as the number of wallets holding small amounts of SHIB has sharply decreased. This decline comes amidst growing uncertainty in the cryptocurrency market, causing increased anxiety among investors.
Are Small Holders Leaving Shiba Inu?
According to a recent analysis by Santiment, a well-regarded market analysis platform, the number of Shiba Inu wallets with minimal SHIB has dropped to its lowest level in nearly two years. This trend may suggest a shift in perspectives among retail investors.
Wallets containing under 1 billion SHIB are classified as small holdings, and it’s noted that the last comparable situation was in November 2022. The simultaneous drop in these smaller wallets alongside ongoing market volatility raises questions about the future distribution of SHIB.
While the number of small SHIB wallets has decreased significantly compared to Dogecoin, the largest meme coin, Santiment observed that retail traders of Shiba Inu appear to be expressing a sense of relief. The situation is indicative of fear, uncertainty, and doubt (FUD) spreading across the network, with larger wallets, those holding 1 billion SHIB and more, dominating the holdings.
Santiment also highlighted that since late July, the level of social discourse surrounding Shiba Inu has been notably low, a trend that has persisted throughout the year. This decline in community engagement underscores the growing discontent and diminished interest among smaller traders in SHIB.
In general, Santiment characterized SHIB as the worst-performing meme coin in 2024, citing a significant decrease in both average and long-term trading yields. They reported that long-term returns have dropped by a remarkable -31.7%, while the 30-day average has decreased by -1.1%. However, there are hopes that once Bitcoin stabilizes, altcoins could experience renewed growth, potentially paving the way for a rebound in the value of this meme coin in the coming months.
Could SHIB Experience a Rally in 2025?
Despite the current difficulties facing Shiba Inu, several cryptocurrency analysts remain hopeful about its long-term and short-term prospects, viewing it as a valuable asset as the digital asset landscape continues to evolve.
According to Investing Haven, a crypto expert, a bullish movement is anticipated for SHIB in 2025. They pointed out positive signals in its performance, particularly as the meme coin is currently evaluating a crucial support level at $0.0000111.
The analyst suggested that Shiba Inu is showing signs of a potential W-reversal on its weekly chart. If SHIB maintains its position at this support level, it could trigger a long-term bullish shift. They expect this rally to commence around mid-2025, encouraging investors to keep an eye on that timeframe.