Shiba Inu Price Goes Sideways, But Diamond Hands Keep Selling at Bay

Popular meme coin Shiba Inu has struggled to break out of its sideways price action following August’s tepid market performance.

Interestingly, despite the muted activity, investor resilience remains notable. On-chain data shows a rising retention rate among holders and a declining exchange balance.

Shiba Inu Faces Resistance, Yet Investors Refuse to Sell

Readings from the SHIB/USD one-day chart show that the meme coin has trended within a range in the past month. It has faced resistance around $0.00001408, while finding support near $0.00001187.

Despite the lackluster performance, most SHIB holders have retained ownership of their tokens, as reflected by the rising Holder Retention Rate metric. 

According to Glassnode, this metric, which tracks the percentage of addresses that maintain a balance of the asset across consecutive 30-day periods, has climbed steadily over the past month and currently sits at 96.68%. 

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This uptick suggests that SHIB investors are showing stronger conviction in the asset’s long-term potential. They are choosing to weather short-term stagnation rather than capitulate. 

Such resilience can reduce volatility and create favorable conditions for upward price movements in the near term.

Furthermore, the SHIB’s balance on cryptocurrency exchanges has fallen steadily in the past 14 days, confirming the reduced selloffs among token holders. Per Glassnode, the total amount of SHIB tokens held on exchange addresses has dropped 0.31% over the past two weeks. 

A decline in exchange balance like this means SHIB investors are moving their tokens off trading platforms and into self-custody, a trend often interpreted as a sign of long-term holding intentions. 

Shiba Inu Braces for Next Move: Will Support at $0.00001187 Hold?

With fewer tokens readily available for sale, immediate selling pressure on the market eases. This could help SHIB break out of its narrow range and climb to $0.00001503.

On the other hand, if bullish momentum begins to wane, SHIB’s price may consolidate even further or break below the support at  $0.0001187. In this scenario, it may fall to $0.000010004.