Shiba Inu (SHIB), the meme-based cryptocurrency, is currently in a perilous state as multiple on-chain indicators signal a bearish trend. Despite efforts to stabilize and recover around the $0.000014 mark, SHIB has struggled to gain significant upward momentum.

Declining Profitability Among Holders

A detailed analysis of on-chain data paints a bleak picture for SHIB. A substantial portion of SHIB holders are now unprofitable at the current price, with 52% of them experiencing losses. This widespread lack of profitability is likely to increase selling pressure as investors seek to minimize their losses.

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Consequently, this pressure often drives the price further downward, creating a vicious cycle that can be challenging to break.

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Adding to the concerns, the net network growth has declined by 0.21%, signaling a bearish trend. This decrease suggests that the influx of new users into the SHIB ecosystem has slowed or even stalled. When fewer new users join the network, the demand for the token typically diminishes, making it harder for SHIB to mount any significant recovery. This reduced demand, coupled with the declining user base, places additional downward pressure on the token’s price.

Diminished Whale Activity

Moreover, large transactions, a key metric often used to gauge whale activity, have decreased by 4.95%. This reduction indicates that major investors, commonly referred to as “whales,” are either withdrawing from SHIB or reducing their exposure. 

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The absence of whale activity is concerning, as these large investors often play a crucial role in driving market trends. Without their support, SHIB faces an uphill battle in reversing its current trajectory.

The overall sentiment surrounding Shiba Inu is overwhelmingly negative. With four of the five major indicators flashing red, both market sentiment and on-chain activity suggest that SHIB will continue to face significant challenges. 

The combined effect of these bearish indicators underscores the critical state of Shiba Inu as it navigates a difficult period in its market performance.