Shiba Inu (SHIB) has started September off on the wrong foot, with its price dropping since the beginning of the month. Historical data suggests that September might not be a good month for SHIB, as it has often ended with a loss in previous years.
A Bearish Outlook
SHIB is currently down over 3% since September 1st. This, combined with some concerning on-chain metrics, paints a bearish picture for the meme coin.
One of the biggest red flags is the “In The Money” metric, which shows that a significant number of SHIB addresses are currently holding tokens at a loss. This could lead to more selling pressure as holders try to cut their losses.
Another worrying sign is the low net network growth. The number of new SHIB addresses has been stagnant, indicating a lack of new investors. This is a major concern, as SHIB needs a fresh influx of investors to experience significant growth.
The $0.000010 Level: A Crucial Point
The $0.000010 price level is crucial for SHIB. A significant number of tokens were bought at this level, and if the price drops below it, these holders could sell their tokens to cut their losses, leading to a further price decline.
Whale Activity: A Glimpse of Hope?
While the overall outlook for SHIB is bearish, there is a glimmer of hope in the form of whale activity. Large transactions have been increasing recently, suggesting that some whales are accumulating SHIB, hoping for future price gains.
Historical Data: A Look Back
Looking at SHIB’s monthly returns over the years, we see that it ended September with a loss in the last two years. The only time it ended September with a gain was in 2021, the year it launched.
This historical data suggests that September could be another bearish month for SHIB. However, the overall sentiment in the crypto market could play a role. A potential rate cut could lead to a bullish sentiment, which could benefit SHIB.
Conclusion
While the current outlook for SHIB is bearish, it’s important to remember that the market is constantly changing. Whale activity and the broader crypto market sentiment could impact SHIB’s performance in September. It remains to be seen whether SHIB will buck the historical trend and end the month with a gain.
