Written by Hazel J. Greene, Senior Analyst

The world of cryptocurrency is no stranger to volatility, and one digital asset that has captured attention in recent times is Shiba Inu. However, Shiba Inu investors have been hit hard, experiencing some of the worst losses among the top 20 cryptocurrencies. With its price plummeting by over 90% since its all-time high, it is evident that the majority of investors are currently nursing losses.

Out of more than 1.3 million Shiba Inu holders, a staggering 83% are currently facing losses. In contrast, other popular cryptocurrencies like Dogecoin (DOGE) and Bitcoin (BTC) continue to show around 45-70% of investors in profit, despite the persistent bear trend. These statistics are an indication that Shiba Inu’s poor performance has left most of its investors with negative returns.

Remarkably, only a small percentage of Shiba Inu holders are currently in the green, with less than 12% reported to be seeing profit. Approximately 200,000 holders out of the total are experiencing favorable outcomes in their portfolios. Additionally, 5% of investors find themselves in the neutral territory, as they purchased their coins at a price close to its current trading value. Even though longer-term holders traditionally yield better returns, the low-profit numbers witnessed by SHIB holders imply that despite 59% of them holding their coins for over a year, profitability remains elusive due to persistent declines.

Despite the current challenging market conditions, there are some potential indications of a reversal for Shiba Inu. Whales, referring to large investors, have recently increased their activity in SHIB operations. Data from IntoTheBlock reflects a surge in whale transactions, with a volume increase of over 25% in a 7-day period. These substantial transactions, involving values of at least $100,000 at the time of transfer, have reached $56.8 million. This heightened whale activity could be interpreted as growing interest among significant investors, suggesting the possibility of an impending price surge. However, it is crucial to note that such bullish signs can quickly turn bearish if whales choose to dispose of their holdings, adding significant selling pressure and impacting the digital asset’s price.

Currently, Shiba Inu is trading well below its 100-day moving average, indicating a bearish trend, particularly in the mid-term. However, if Bitcoin’s price begins to rally towards $31,000 once again, it could potentially trigger a sharp reversal for SHIB. As Bitcoin’s performance often influences the broader cryptocurrency market, a bullish turn for the leading digital asset may positively impact Shiba Inu’s price.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.