SHIB, the self-acclaimed Dogecoin killer, continues to lose money despite a large three straight weeks of losses.
The loss resulted from profit-taking by significant SHIB token holders as the crypto market entered a risk-off mode. This is a state in which traders lower their exposure to riskier assets, as blockchain data indicates.
Retail traders’ interest in the coin continues to be high. a rising number of wallets with significant SHIB holdings have cut their positions.
A growing number of wallets with considerable holdings, according to Nansen, are cutting back on their SHIB investments. This is presumably as a result of profit-taking.
Similar trends are seen in data from blockchain data firm Santiment. Since the beginning of November, the number of SHIB transactions totaling more than $100,000 has climbed. Every day, more and more unique addresses are being used to deposit SHIB into centralized exchanges.
Rick Delaney, a senior analyst, said that, like any asset, the supply and demand determine the price of SHIB. Its speculative appeal lured a more significant proportion of SHIB buyers only. Attracted by the asset’s rising price, many SHIB investors lack the long-term conviction necessary to maintain their positions. Moreover, to reenter the market during a price decline.
According to Santiment’s metric explainer, an increase in the active deposit metric may imply an increase in short-term sell pressure for the token.
What Causes SHIB’s Price Decline?
According to CoinGecko, Decentraland (MANA) and the sandbox (SAND) tokens are the most popular altcoins trading on centralized exchanges.
CoinMarketCap commented in response to CoinDesk stating that SHIB’s price decline can be primarily with investors’ recent turn away from meme tokens and toward metaverse projects. It is readily apparent when the trading volumes of MANA, SAND, and SHIB are compared. Trading volume always correlates with investor interest in a particular project.
The canine-themed coin’s social media excitement has also dwindled significantly. At the time of publication, Google trends indicated a global cost of 22 for the search query “SHIB,” down from a peak of 100 at the end of October. Google Trends is a common method for gauging retail interest in trending subjects.
While SHIB was previously the most traded token on controlled exchanges, as CoinGecko’s statistics indicate, its trading volume has decreased dramatically.
According to Nansen, trading volume is critical for SHIB and other meme tokens. A decline in trading volume indicates that investors are losing interest and are becoming more “conservative” about investing in meme-themed tokens.
Is there Hope for SHIBArmy?
Although the meme token’s buzz on social media has died down, retail investors’ interest in Shiba Inu hasn’t. The number of distinctive addresses holding SHIB continues to grow, which is excellent news for the SHIBArmy.
On Nov. 11, the number of unique addresses holding Shiba Inu topped one million at a period when the price of SHIB was already declining, according to Nansen data.
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