By Bitcoinist - 9 months ago - Reading Time: 2 minutes
Max Pain As 83% Of SHIB Investors Are Seeing Losses, Is A Change Coming?
Shiba Inu investors are seeing some of the worst losses of the top 20 cryptocurrencies after its price declined by over 90% since its all-time high. Since the cryptocurrency is still relatively new, most of its investors are short-term holders and with the meme coin’s performance over the last year, it is no surprise that the majority of its investors are nursing losses right now.
Over 83% Of Shiba Inu Holders Are In Losses
Of the over 1.3 million Shiba Inu holders, a total of 83% of them are currently seeing losses. This number is in stark contrast to the likes of Dogecoin (DOGE) and Bitcoin (BTC) which are still seeing around 45-70% of holders in profit despite the persistent bear trend.
This figure means that only a small percentage of the holders are currently in the green, and even then, slightly so. Data from IntoTheBlock points to only 12% of SHIB holders in profit, which means less than 200,000 holders are actually seeing some kind of green in their portfolio.
At current prices, 5% of the total holder base is sitting in the neutral territory. This means that these investors purchased their coins at roughly the same price as the meme coin is trading right now.
Even though longer-term holders tend to make more gains over time, SHIB’s low-profit numbers mean that despite 59% of holders having held their coins for more than a year, it has not done much for their profit margins as the meme coin has continued to suffer declines over the course of 2023 as well.
Is A Reversal Coming For SHIB?
Presently, the only thing that could point toward a reversal for SHIB right now is the fact that whales have increased their activities. IntoTheBlocks shows that whale transactions have been on the rise recently, pushing their volume up over 25%.
In a 7-day period, SHIB transactions with values of at least $100,000 at the time of transfer have reached $56.8 million. This increase in whale activity could point toward growing interest among large investors, who could be bracing for an incoming price jump. However, just as this can be bullish, it can easily turn bearish if the whales are moving their coins to be sold as it would mount selling pressure on the price of the digital asset.
The meme coin is trading well below its 100-day moving average, which suggests a bearish trend, especially in the mid-term. However, if there is a turn in the tide and Bitcoin begins to rise toward $31,000 once more, then the price of SHIB could see a sharp reversal.
Original source: Bitcoinist