Shiba Inu (SHIB), one of the most popular meme coins in the cryptocurrency market, is currently facing significant price pressure. This altcoin has dropped sharply by 21% in the past 10 days, falling to 0.00001210 USD.
Despite broader market fluctuations, this price decline is primarily due to investor behavior rather than external market conditions.
Shiba Inu Loses Retail Investors
The price drop of Shiba Inu can be traced to a sharp decrease in the number of new addresses interacting with the token. In the past 10 days, the number of new addresses has dropped by nearly 40%. The sudden withdrawal of new investors indicates declining confidence in the price potential of SHIB, especially after a previous extended rally this year.
The decline in new address numbers suggests a lack of new investment in the asset, which is often an important indicator that the market has lost momentum. With fewer investors participating in the market, buying pressure decreases, which inevitably affects Shiba Inu's price. The reduced interest from new investors has created an uncertain cloud over the token's future price volatility.
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Number of new Shiba Inu addresses. Source: GlassnodeDespite the recent downward trend, Shiba Inu's retention rate remains strong, reaching 96%. This means that most SHIB holders are choosing to HODL, rather than sell their positions. This level of investor retention indicates significant continued confidence in Shiba Inu's long-term potential, with no widespread fear or panic among current investors.
Historically, a retention rate dropping below 80% would indicate a larger bearish sentiment, but SHIB is far from this point. This strong retention rate provides some reassurance to investors who might be worried about the current market decline.
Shiba Inu retention rate. Source: GlassnodeSHIB Price Declining on Daily Chart
Currently, Shiba Inu's price is at 0.00001210 USD, down 21% in the past 10 days. The recent price decline is primarily due to a significant reduction in new investors entering the market.
If this trend continues, SHIB may lose the critical support level of 0.00001188 USD, pushing the price down to 0.00001141 USD or potentially lower. However, if SHIB maintains the 0.00001188 USD support level, it is likely to recover.
Shiba Inu price analysis. Source: TradingViewA bounce from this level could push Shiba Inu's price to 0.00001317 USD. Securing this level as support would create a bullish price scenario, invalidate the bearish argument, and bring hope for price growth in the near future.
