Shiba Inu price recovers from downtrend, prepares for massive memecoin rally
- 56% of Shiba Inu holders are currently suffering from losses at the current price.
- Shiba Inu price has dropped over 70% from its all-time high, and a minority of holders are profitable.
- The memecoin has recovered from the drop and started recovery, posting 3% gains overnight.
- Analysts predict Shiba Inu price has bullish potential and could break into a massive rally.
Shiba Inu price plunged in the recent altcoin bloodbath, alongside a drop in Bitcoin price. Shiba Inu price has recovered from the drop and started an uptrend.
Shiba Inu price prepares for a massive rally
Based on data from crypto intelligence platform IntoTheBlock, a minority of Shiba Inu holders, 40%, are profitable at the current price. Despite its recovery, Shiba Inu token holders suffer from the memecoin's losses.
Shiba Inu price is currently 70% away from an all-time high. IntoTheBlock identifies wallets of traders with Shiba Inu balance and the average price of the tokens. Comparing the purchase price to the current price of the token offers insights into the profitability of Shiba Inu holders.
A Shiba Inu token holder is considered underwater if the average purchase price of SHIB is greater than the current price. 70% of the token holders are underwater, according to IntoTheBlock.
WhaleStats, a platform that monitors the activity of large wallet investors, has observed the 1,000 non-exchange Ethereum whales. These whales account for nearly $1.5 billion worth of Shiba Inu. The memecoin is their second-largest altcoin holding.
Analysts have evaluated the Shiba Inu price trend and believe that the memecoin is in the buy zone. @AltcoinSherpa, a pseudonymous crypto analyst, waits for Bitcoin to recover before retail investors start accumulating the memecoin.
$SHIB: This is just painful to see...it'll eventually be a good buy but I am more waiting for btc to recover/market to start doing well. Once I start to think more retail is coming in, I'll start to accumulate this one. #SHIB pic.twitter.com/1uyKE8hVHg
— Altcoin Sherpa (@AltcoinSherpa) January 11, 2022
FXStreet analysts believe that Shiba Inu is in a highly oversold territory. Analysts have predicted that there may be a relief rally to $0.000078.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
