Shiba Inu (Shib), one of the most popular meme coins in the cryptocurrency market, has recently faced considerable downward pressure. Altcoin experienced a sharp 21% drop in the last 10 days, falling to $0.00001210.
While the broader markets have ups and downs, this particular decline is largely attributable to investors’ behavior rather than external market conditions.
Shiba Inu loses investors
The drop in Shiba Inu’s price can be traced back to a sharp decline in the number of new addresses interacting with the token. Over the past 10 days, the number of new addresses has dropped by almost 40%. This sudden exit for new investors shows that Shiv’s confidence in price potential has waned, especially after the extended rally at the beginning of the year.
This reduction in new addresses means the lack of new investments in assets. It is often an important indicator that the market has lost momentum. As fewer investors enter the market, there will be less purchasing pressure, which inevitably affects Shiba Inu’s price. The decline in interest from new owners has created a cloud of uncertainty in future price transfers for tokens.
About Token TA and Market Updates: Want more token insights like this? Sign up for Editor Harsh Notariya’s daily crypto newsletter.
Despite recent bearish momentum, Shiba Inu’s retention rate is strong, standing at 96%. This means that the majority of people who hold Shiv choose HODL rather than selling their position. This level of investor retention suggests that there is still substantial belief in Shiba Inu’s long-term potential, and there is no widespread fear or panic among existing owners.
Historically, retention rates below 80% have shown greater bearish feelings, but Shiv is far from this point. This strong retention rate gives some peace of mind to investors who may be worried about the current market slump.
Shib Price slides into daily charts
Currently, Shiba Inu’s price is $0.00001,210, down 21% over the past 10 days. The recent decline has been driven primarily by a sharp decline in new investors entering the market.
If this trend continues, SHIB could lose its key support level of $0.00001188, pushing the price down or potentially lowering its price to $0.00001141. However, if Shib is able to maintain a support level of $0.00001188, there is a possibility of recovery.
Bounces from this level could push Shiba Inu’s price up to $0.00001317. Securing this level as support creates bullish scenarios, disabling bearish papers and providing hope for further price growth in the near future.
The price of Post Shiba Inu fell 21% despite its high retention rate. This is the first reason it appeared in Beincrypto.
