Shiba Inu, the popular dog-themed meme coin, is facing some challenges. The number of small wallets holding SHIB has dropped to its lowest point in almost two years, suggesting that retail investors might be losing interest.
Small Wallets Are Disappearing
A recent report from Santiment, a market intelligence platform, shows that wallets holding less than 1 billion SHIB have significantly decreased. This decline coincides with the general market uncertainty and could signal a change in investor sentiment.
While Shiba Inu’s small wallets have decreased compared to Dogecoin, the largest meme coin, Santiment highlights that Shiba Inu’s retail traders seem to be less enthusiastic. This lack of interest is further supported by the low level of social discussion about Shiba Inu, which has been consistently low since late July.
Shiba Inu’s Performance in 2024
Overall, Shiba Inu has been one of the worst-performing meme coins in 2024. Its long-term trading returns have decreased by a whopping 31.7%, while its 30-day average trading returns have fallen by a smaller 1.1%.
However, some analysts believe that once Bitcoin stabilizes and altcoins start performing well again, Shiba Inu could rebound.
Hope for the Future?
Despite the current challenges, several crypto analysts remain optimistic about Shiba Inu’s long-term potential. Investing Haven, a crypto expert, predicts a bullish surge for SHIB in 2025.
They believe that Shiba Inu is currently testing a major support level and might be forming a W-reversal pattern on the weekly chart. If SHIB holds strong at this level, it could trigger a bullish reversal in the long term.
While the future of Shiba Inu is uncertain, it’s clear that the coin is facing some headwinds. Whether it can overcome these challenges and live up to the expectations of its bullish supporters remains to be seen.
