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As on-chain data shows that traders are growing impatient with the meme coin, Shiba Inu is dealing with a concerning trend. According to the most recent market data, short-term holders are dumping their tokens at a startling rate, which is further undermining SHIB's momentum.
Shiba Inu's ability to maintain rallies is being weakened by this practice, which also makes it less desirable for speculative trading. The asset has seen a mass exodus as evidenced by recent data showing a 63.43% decline in short-term SHIB traders. These traders have drastically decreased their exposure, indicating that the lack of quick profits is driving them away.
Typically they hold tokens for less than a month. The story that even mid-term investors are finding it difficult to defend keeping SHIB in their portfolios is further supported by the 2.91% decline in 1-12 month holders (cruisers). Conversely, holders who have held SHIB for more than a year have seen a 6.55% increase in their holdings, indicating that some investors continue to have faith in the company's future prospects.
That being said, this change suggests that Shiba Inu is evolving from an active trading opportunity to a long-term speculative asset. One factor contributing to SHIB's ongoing downward trend is the ongoing sell-offs by short-term traders. Key support levels have proven difficult for the token to hold, and its price is currently circling around $0.000016. It is unclear if SHIB will be able to stage a significant recovery given the traders' reluctance to hold their positions and the bearish market sentiment.
Yuri MolchanEither a significant burn event, a utility-driven development or an unexpected spike in market demand is required for SHIB to gain traction among traders again. Short-term traders will keep leaving the market in the absence of these factors, leaving only long-term holders to keep it going.
The dynamics of Shiba Inu on the chain reveal a concerning trend: Traders are no longer prepared to hold out for profits, which results in constant sell-offs and stifled price movement. It may be difficult to entice speculative traders back into the ecosystem if this trend continues, and SHIB may have trouble recovering in the near future.
Dan Burgin
Vladislav Sopov