Shiba Inu (SHIB), one of the most popular meme coins in the cryptocurrency market, has been facing significant downward pressure recently. The altcoin has experienced a sharp 21% decline in the last 10 days, dropping to $0.00001210.
While the broader market has had its ups and downs, this particular decline is largely attributed to investor behavior rather than external market conditions.
Shiba Inu Loses Its Investors
The drop in Shiba Inu’s price can be traced to a sharp decline in the number of new addresses interacting with the token. In the last 10 days, the number of new addresses has decreased by nearly 40%. This sudden exit of new investors indicates waning confidence in SHIB’s price potential, particularly after an extended rally earlier in the year.
This decline in new addresses signifies a lack of fresh investment into the asset, often a key indicator that a market has lost momentum. With fewer investors entering the market, there is less buying pressure, which inevitably impacts the price of Shiba Inu. The decreased interest from new holders has created a cloud of uncertainty over the token’s future price movement.
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Despite the recent bearish momentum, Shiba Inu’s retention rate remains strong, standing at 96%. This means that a significant majority of those holding SHIB are choosing to HODL, rather than sell their positions. This level of investor retention suggests that there is still substantial belief in the long-term potential of Shiba Inu, and that there is no widespread fear or panic among existing holders.
Historically, a retention rate dropping below 80% would indicate a larger bearish sentiment, but SHIB is far from this point. This strong retention rate provides some reassurance for investors who may be concerned about the current market downturn.
SHIB Price Is Sliding On The Daily Chart
At present, Shiba Inu’s price is sitting at $0.00001210, down 21% over the last 10 days. The recent drop has been primarily driven by the sharp decline in new investors entering the market.
If this trend continues, SHIB could lose the critical support level of $0.00001188, pushing the price down to $0.00001141 or potentially lower. However, if SHIB manages to hold onto its $0.00001188 support level, there is a possibility of recovery.
A bounce from this level could push Shiba Inu’s price up to $0.00001317. Securing this level as support would create a bullish scenario, invalidating the bearish thesis and offering hope for further price growth in the near future.
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