Shiba Inu Hits Two-Month Low in Holder Confidence — Further Drop Ahead?
Shiba Inu (SHIB) has dropped more than 20% since late July, caught in a bearish descending channel. On-chain data shows declining new user activity and a falling holder retention rate, pointing to growing selling pressure and a challenging outlook for the meme coin’s near-term recovery.
Leading meme coin Shiba Inu (SHIB) has been caught in a descending parallel channel since July 23, shedding over 20% of its value.
On-chain data suggests that the altcoin could face additional bearish pressures, with waning demand pointing to a further downward move.
SHIB Faces Bearish Pressure as Investor Confidence and Demand Fade
Readings from the SHIB/USD one-day chart show that the meme coin has traded within a descending parallel channel since July 23, with its price falling by double digits during that period.
For token TA and market updates: Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.
SHIB Descending Parallel Channel. Source:
TradingView
This bearish pattern emerges when an asset’s price consistently makes lower highs and lower lows, creating two parallel trendlines that slope downward. It signals a sustained downtrend, driven by weakening investor confidence and low buying pressure.
On-chain data from Glassnode confirms the decline in new demand for the meme coin. According to the data provider, the number of unique addresses appearing for the first time in a SHIB transaction has dropped by 30% in the past two weeks.
SHIB Number of New Addresses. Source:
Glassnode
This sustained drop in new user activity carries significant implications for SHIB’s short-to mid-term outlook. Without a steady influx of new participants, buying pressure dries up, making it difficult for the meme coin to escape its current downtrend.
In addition, SHIB’s Holder Retention Rate has plummeted. According to Glassnode, the retention rate fell to a two-month low of 96.096% yesterday, signaling a drop in the number of existing holders still maintaining their positions.
SHIB Holder Retention Rate. Source:
Glassnode
This metric measures the percentage of holders who retain their tokens over a given period. A high retention rate reflects strong faith in the asset’s future prospects, while a falling retention rate suggests increasing uncertainty or dissatisfaction among holders.
Therefore, SHIB’s falling Holder Retention Rate points to heightened selling pressure, as more investors exit their positions.
Can a Rally Push SHIB Back to $0.00001295?
At press time, the top meme coin trades at $0.00001252. With climbing sell-side strength, the altcoin risks testing support at $0.0000167. Should this price floor fail to hold, SHIB’s value could drop toward $0.00001004.
SHIB Price Analysis. Source:
TradingView
On the other hand, if new demand climbs and traders extend their holding time, SHIB could reverse its downward trend and rally to $0.00001295.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
As AI momentum begins to recede, Buffett-style "boring investments" quietly make a comeback
After years of AI and momentum trading dominance, the "quality factor" investment strategy is making a strong comeback. Driven by the repricing of interest rate expectations and slowing profit growth, capital is shifting focus from chasing growth to emphasizing profit quality and robust balance sheets. The long quality, short momentum strategy has surged 55% so far this year. The quality factor is negatively correlated with AI; amid crowded momentum positions, Warren Buffett's philosophy of steadfastly holding high-quality assets is once again gaining recognition on Wall Street.
Siebert Financial analyst targets $175,000 bitcoin price, cites ETFs and stablecoin growth
Quarterly Revenue Hits 16.8 Billion for IPO Push—Can Anthropic’s Profits Support a $2 Trillion Valuation?
Anthropic disclosed Q3 revenue of $16.8 billion and achieved adjusted profitability. Compared to OpenAI's expectations and projected massive losses in 2025, the analysis covers Anthropic's enterprise growth logic, competitive landscape, and the rationality of its $2 trillion valuation.
"Bullish" Burry Issues Another Warning for US Stocks: If the "Magnificent Seven" Join the Drop and Bond Yields Fall, Wall Street May Face a "Bloody October"
Burry warns that the painful trading in the market may continue. He proposes a bearish "Red October" scenario: if the "Magnificent Seven" U.S. tech stocks follow semiconductor stocks in a decline, and bond yields simultaneously fall, his conviction in this scenario will become even stronger.
Crypto prices
More
