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Almost 90% of SHIB investors are holding a losing position

Almost 90% of SHIB investors are holding a losing position

In the last 7 days, the cryptocurrency market managed to remain relatively stagnant and sustain its market capitalization above $1 trillion, which could be seen as a positive sign as the market prepares for the next move. However, not many positive outcomes are in sight for some of the crypto assets, such as Shiba Inu (SHIB).

The number of Shiba Inu’s investors that are holding a losing position has increased in the last 20 days. Going from 82% of SHIB holders in the red, to 88% of addresses “out of the money”.

This is what data retrieved by Finbold on September 27 from the IntoTheBlock app reveals, while considering the Shiba Inu token’s price at the time each crypto wallet address received it, in comparison to current prices in the spot market.

According to the app, only 9% of all SHIB investors are holding a profitable position, while 3% acquired their tokens in the same price zone of $0.000007, by the time of publication.

Token summary stats for SHIB holders.
Token summary stats for SHIB holders. Source: IntoTheBlock

Notably, the amount of losing holders has increased as the amount of these investors holding for longer than one year also increased by 100bps. This means that both metrics could be correlated, with Shiba Inu accumulating more than 35% in price depreciation in the last 12 months, according to CoinMarketCap’s index.

Mid-term holders — holding for a period between 1 to 12 months —  remained the same at 27% of the holder’s composition by time held, while short-term holders are leaving SHIB, and fresh money is not coming into the ecosystem.

Shiba Inu faces bearish signals

Interestingly, on-chain signals are validating the data above about short-term holders losing weight in investors’ composition by holding time.

The “Net Network Growth” of just 0.26% is seen by IntoTheBlock algorithms as a bearish sign to Shiba Inu. The drop in the percentage of holders “In the Money” is also a bearish indication, as well as the amount of “Large Transactions” plummeting by 3.5%.

Sentiment signals for SHIB.
Sentiment signals for SHIB. Source: IntoTheBlock

However, there is a bullish imbalance in the “Bid-Ask volume” on crypto exchanges by 3.35%, which means that there are more orders to buy SHIB, than to sell the token, by this amount.

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