Shiba Inu Wallets Holding Small Amounts Decline To Lowest Point In Nearly 2 Years
Shiba Inu, a popular dog-themed meme coin, has recently experienced a notable downturn as its small wallet holdings have seen a significant decrease. This trend is unfolding amidst broader market instability, which has heightened fear and uncertainty among cryptocurrency investors.
Are Shiba Inu Small Holders Abandoning the Digital Asset?
According to a recent report by Santiment, a leading market intelligence platform, the number of Shiba Inu wallets containing small amounts of SHIB has dropped to its lowest level in nearly two years. This decline suggests a potential shift in sentiment among retail investors.
Specifically, wallets holding less than 1 billion SHIB are considered small holdings. Santiment noted that the last time these numbers were this low was in November 2022. The decrease in smaller wallets, coupled with unstable market conditions, raises concerns about SHIB’s distribution in the future.
Comparison with Dogecoin
While SHIB’s small wallet holdings have plummeted compared to Dogecoin, the largest meme coin, Santiment highlighted that Shiba Inu’s retail traders are experiencing significant relief. The drop indicates widespread FUD (Fear, Uncertainty, and Doubt) within the network. Notably, large wallets holding 1 billion SHIB and above now control the majority of the asset.
Since late July, Santiment has observed an extremely low level of social discourse surrounding Shiba Inu, which has continued throughout the year. This decline in social interactions reflects the dissatisfaction and waning interest of smaller retail traders who are rapidly exiting the asset.
Performance and Future Prospects
Overall, Santiment has labeled SHIB as the worst-performing Dogecoin in 2024, citing a substantial drop in both average and long-term trading returns. The platform reports that long-term trading returns have decreased by an astonishing -31.7%, while the 30-day average trading returns have fallen by -1.1%. However, once Bitcoin stabilizes and altcoins begin to thrive again, SHIB could be well-positioned for significant success in the coming months.
SHIB Gearing Up for a Major Rally in 2025
Despite the current negative trends surrounding Shiba Inu, several crypto analysts remain optimistic about its potential in both the short and long term. They see SHIB as a promising asset in the ever-evolving digital asset landscape.
Investing Haven, a renowned crypto expert, has forecasted a bullish surge for SHIB in 2025. The expert points to positive developments on SHIB’s chart, noting that the meme coin is currently testing a major support level at $0.0000111.
Potential Bullish Reversal
According to the analyst, Shiba Inu appears to be forming a possible W-reversal on the weekly chart. With SHIB holding strong at the mentioned level, this pattern could trigger a long-term bullish reversal. The expert anticipates this rally to occur in mid-2025 and advises investors to watch for this timeframe.
In conclusion, while Shiba Inu faces challenges with declining small wallet holdings and reduced social interactions, its potential for a significant rally in 2025 provides a beacon of hope for investors. As the cryptocurrency market continues to evolve, keeping an eye on SHIB’s developments could prove beneficial.
