Shiba Inu’s fortunes are facing a potential turning point as the cryptocurrency market shifts, with recent data revealing declining profitability and investor sentiment. According to on-chain metrics, only 104.41% of SHIB holders are currently in profit, representing roughly $1.29 billion of accumulated gains. However, this positive outlook masks a concerning reality: approximately 830 trillion SHIB ($10.5 billion) is currently held at a loss, highlighting the vulnerability of retail investors holding onto their assets. 🔒
This trend is reflected in the cryptocurrency’s price chart, which has stagnated just above its crucial support level at $0.000012. The on-chain data shows that if the price breaks below this point, the proportion of profitable addresses may plummet below 10%, sending Shiba Inu significantly below the milestone of $100 trillion in profit.
This situation poses a considerable challenge for SHIB’s future. As profitability erodes, investors have historically reacted strongly to these shifts, leading to increased selling pressure that could accelerate the downward trend towards the $0.00001 zone. Despite this, the market remains weak with lackluster volume and a sluggish recovery in sight.
Although historical trends offer some hope for a turnaround, the current situation lacks the momentum needed to break through the current resistance levels. Bullish sentiment might return only if SHIB stabilizes at its current price level and initiates a brief reversal above key moving averages (the 100 and 200 EMA). However, this would require both technical support and renewed interest from whales, neither of which is evident in the current market data.
In conclusion, Shiba Inu’s declining profitability and stagnant volume are cause for concern. Not only would missing the $100 trillion profit mark be symbolic, but it could also potentially erode trust in the cryptocurrency’s future trajectory.