Shiba Inu price decline leaves 80% of holders underwater; SHIB likely to decline further

Shiba Inu price continued its disappointing run on Thursday as the altcoin failed to breach a key barrier. With every passing day, SHIB holders are falling deeper into the abyss of losses, and their only saving grace is sitting idle, making no move for weeks now.

Shiba Inu price rally is dependent on this cohort

Shiba Inu price is presently trading at $0.0000073 after falling by nearly 10% in the span of a week after failing to flip the $0.0000079 resistance level into support. This line acted as the support floor for the meme coin back in December 2022 and was last broken below in June 2022 before this month. 

Closing above this line is crucial for Shiba Inu price as only then will it be able to breach the $0
.0000080 mark and initiate recovery towards $0.0000100. Upto and beyond this price point resides trillion of SHIB awaiting a trigger to become profitable for their holders. 

SHIB/USD 1-day chart

The lack of the same has left millions of investors underwater, 84.59% to be precise. The extent of losses has impacted the cryptocurrency so drastically that losses are currently running at a 3-year high for SHIB holders.

Shiba Inu investors at a loss

These losses could extend further if the altcoin declines further, which it is actually showing signs of. The Moving Average Convergence Divergence (MACD) indicator is slowly moving into a bearish crossover, with the histogram registering declining green bars suggesting receding bearishness.

The Relative Strength Index (RSI) is also bearish at the moment; however, if the indicator manages to flip the neutral line into support, it could note some recovery.

But it would need more than broader market cues to do so, support from its investors more specifically. The whale cohort, which controls about 66% of the entire circulating supply of SHIB, has noted no significant activity in the last couple of weeks, leaving the Shiba Inu price entirely in the hands of the retailers.

Shiba Inu whale transactions

To make it worse, retail traders are only likely to make a move if and when the whales become active in order to gain some substantial profits out of it. Thus the meme coin will remain vulnerable to a decline for as long as its investors remain quiet.