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With shifting market dynamics and declining profitability, Shiba Inu is under increasing pressure. Only 104.41% of SHIB holders are presently in the money, according to recent on-chain metrics, with roughly 102 trillion SHIB ($1.29 billion) held in profit. A startling 830 trillion SHIB ($10.5 billion) is currently out of the money, indicating that most investors are holding at a loss. This is a very negative indication for any asset that depends on retail participation.
This sentiment is evident on the price chart. SHIB has barely held its ground as it has continued to trade just above the critical support level at $0.000012. The on-chain outlook is reflected in this technical weakness: if the price breaks lower, the proportion of profitable addresses is probably going to fall below 10%, which would push Shiba Inu below the figurative 100 trillion "in the money" threshold.
From the standpoint of behavior, this is a dangerous turning point. Shiba Inu's user base, which is primarily retail-based, has a history of reacting strongly to changes in profitability. The chance of capitulation increases as fewer holders receive returns; this could lead to a surge of sell pressure that quickens SHIB's decline toward the $0.00001 zone. The volume trend is also still unimpressive.
In contrast to past recoveries from support zones, there is a clear lack of buyer follow-through, indicating that momentum has run out. The RSI is still in the weak range of 41, indicating that a reversal is not yet imminent. However, a breakdown is not a given. Bullish confidence may return if SHIB is able to stabilize at current levels and initiate a brief reversal above important moving averages (the 100 and 200 EMA).
But that would necessitate both technical assistance and a resurgence of whale interest, neither of which the data currently supports. In summary, SHIB's declining profitability and stagnant volume are a warning sign. Not only would it be symbolic to miss the 100 trillion profit mark, but it might also strengthen market mistrust of SHIB's immediate future course.
Vladislav Sopov
U.Today Editorial Team