Popular dog-themed meme coin Shiba Inu was hit as its small portfolios saw a significant decline amid general market uncertainty, which triggered increased fear among cryptocurrency investors.
Are Small Shiba Inu Owners Abandoning the Digital Asset?
In a recent report According to Santiment, a leading market intelligence platform, the number of Shiba Inu wallets holding small amounts of SHIB has dropped to its lowest level in nearly two years, indicating a potential shift in sentiment among retail investors.
Specifically, wallets holding less than a billion SHIB are generally considered small holdings, and Santiment noted that the last time the numbers were this low was in November 2022. With the decline in small wallets coinciding with unstable market conditionsThis development could raise doubts about the future distribution of SHIB.
Although small SHIB wallets have fallen compared to Dogecointhe largest meme cryptocurrency, the platform noted that Shiba Inu retail traders were showing great relief. The drop indicates that there is a lot of FUD spreading on the network, with large wallets holding 1 billion SHIB and more controlling the majority.
Santiment also pointed out that since late July, social discussion around Shiba Inu has been extremely low and that this trend has essentially continued throughout the year. Given the number of small traders who have been exiting this asset at a rapid pace, this decline in social interactions illustrates the dissatisfaction and lack of interest among traders in SHIB.
Overall, Santiment rated SHIB as the worst performing Dogecoin in 2024 due to the substantial decline in average and long-term trading returns. According to the platform, long-term trading returns declined by an astonishing -31.7%, while 30-day average trading returns fell by just -1.1%. However, once Bitcointhe flagship crypto asset, is able to stabilize and altcoins can once again thrive, this development has the ability to position the meme coin for great success in the months to come.
SHIB Prepares for Big Rally in 2025
Despite the negative events surrounding Shiba Inu, several crypto analysts are very optimistic about the future coin memeits long and short term potential, positioning it as a promising asset in the ever-evolving world of digital assets.
Investing Haven, a cryptocurrency expert has foreseen a bullish push for SHIB in 2025, citing positive developments on its chart as the meme coin is currently testing a major support level at $0.0000111.
According to the analyst, Shiba Inu seems to be showing a possible W-shaped reversal on the weekly chart, and with SHIB If the price remains high at the aforementioned level, it could trigger a long-term bullish reversal. He therefore anticipates the rally to take place in mid-2025, urging investors to pay attention to this period.
Featured image from Unsplash, chart from Tradingview.com
