SHIB Faces Persistent Bearish Trends: Is Recovery Out of Reach?

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Shiba Inu (SHIB) has plunged 65% from its peak earlier this year, now reaching a new low. Despite a brief rebound in large transactions, this meme coin remains in dire straits. Technical analysis accurately depicts SHIB’s struggles.

The price has steadily declined, recently dropping to around $0.00001584. The 50, 100, and 200 Exponential Moving Averages trending downward suggest persistent bearish momentum. A significant portion of SHIB’s peak gains has been erased due to this continuous downtrend, driven by a lack of demand.

_{^{SHIB/USDT Chart Source: TradingView}}

On-Chain Data Analysis

On-chain data offers more context. Over the last 24 hours, there have been 29 transactions, totaling 1.15 trillion SHIB. Although this activity seems substantial, it is crucial to note that on July 25, 2024, large transaction volumes peaked at 55 and hit a low of 15 on July 28, 2024. This fluctuation indicates some movement but not enough to suggest a long-term recovery.

Significant fluctuations in high transaction volumes were observed, peaking at 1.95 trillion SHIB on July 29, 2024. Despite this brief upswing, market sentiment remains cautious. Even with recent large volumes, overall bearish trends persist. Wider market indicators paint a similar picture. Currently, only 48% of its holders are profitable, with 47% experiencing losses and 5% breaking even. This distribution highlights the recent challenges SHIB investors face.

Concentration Of Large Holders

Moreover, a substantial amount of SHIB is held by a small number of key players, as evidenced by the 73% concentration of large holders. Shiba Inu’s recent performance has been disappointing, with significant losses and inconsistent transaction activity.

The technical analysis and on-chain data both indicate persistent bearish momentum, while market sentiment remains cautious. The concentration of large holders adds another layer of complexity to SHIB’s outlook.