SHIB Capitulation? Shiba Inu Investors’ Bearish Sentiment Could Signal a Potential Rebound

The Shiba Inu meme-inspired cryptocurrency has lost more than 55% of its value in the past six months, now trading at $0.00001348, as it has recently suffered from a broader market downturn that has seen it fall 3% in a month.

While the cryptocurrency has risen more than 30% since the start of the year, a recent analysis by blockchain analytics firm Santiment shed light on its ecosystem and revealed that its investors are experiencing a “tremendous level of FUD (fear, uncertainty, and doubt)” while wallets containing more than 1 billion SHIB hold the “vast majority” of funds.

According to Santiment’s analysis, the percentage of meme-inspired cryptocurrency supply held by wallets holding less than 1 billion SHIb is now at its lowest level since November 2022.

According to the company, the level of social discussion around SHIB has “been extremely low since late July and has essentially declined throughout the year.” Sentiment for the cryptocurrency “shows a slight negative trend” as small traders “have been abandoning the asset like flies.”

Meanwhile, leading meme Dogecoin saw short-term traders post a slight profit, while long-term traders “are near their lowest levels of the past year.”

According to the firm, retail traders’ wallets with 1 million DOGE or less hold about 11.8% of the cryptocurrency’s supply, exactly the same level as at the start of the year, and are currently accumulating.

On the other hand, retail traders of the meme-inspired cryptocurrency PEPE “have actually shown a lot of confidence over the past three months,” as wallets holding 1 million PEPE or more “have earned their share of the available supply, using each dip as an opportunity to accumulate more.”

The firm noted that the opposite would be preferable, where retail traders would pull back and whales would recoup their sales. Shiba Inu’s setup, on the other hand, means it could “potentially perform very well once Bitcoin is able to stabilize and altcoins are able to thrive again.”

Featured image via Unsplash.