Shiba Inu price plummets 21% despite stable holding ratio: What is really going on?

Shiba Inu (SHIB) – one of the most prominent meme coins in the crypto market – is experiencing significant sell pressure in recent days. In just 10 days, this altcoin has plummeted by 21%, currently trading around $0.00001210.

Despite the fact that the crypto market has been continuously experiencing fluctuations, this latest plummet of SHIB largely stems from the mentality and profit-taking behavior of investors, rather than being influenced by external macro factors.

Shiba Inu is losing investors

One of the main reasons why the price of SHIB has plummeted is the significant decline in the number of new wallets interacting with this token. In just the past 10 days, the number of new wallet addresses has decreased by nearly 40% — a sign that new capital is gradually withdrawing from the crypto market. This retreat reflects a clear weakening of confidence in SHIB's growth potential, especially after a series of strong price increases earlier this year.

The decline in the number of new addresses is often a warning signal of an impending weakening phase. When new buying power is no longer present, the demand pressure decreases rapidly, leading to a price drop. In the context of the absence of new investors, the SHIB market is currently in an unstable state, with many questions surrounding the next direction of this meme coin.

The number of new addresses interacting with SHIB | Source: Glassnode## The high coin holding ratio is a rare highlight.

Although Shiba Inu (SHIB) is under significant downward pressure, the retention rate of the project still reaches an impressive level of up to 96%. This indicates that the majority of investors are still determined to hold SHIB, rather than panic sell. This is a positive signal, reflecting that long-term confidence in this meme coin has not wavered.

In the past, when the coin holding rate dropped below 80%, the market often witnessed deeper plummets. However, with SHIB currently maintaining a high coin holding level, the worry about a large-scale sell-off has temporarily eased. This 96% figure is not only technical but also a testament to the enduring commitment of the SHIB holder community – even when the crypto market enters difficult times.

Shiba Inu holding ratio | Source: Glassnode## SHIB price chart shows negative trend

Currently, the price of SHIB is fluctuating around $0.00001210, which corresponds to a decrease of 21% just in the past 10 days. The selling pressure mainly comes from the rapid withdrawal of new investors – a group that is considered the main driving force behind the demand supporting the price in the previous phase.

If this weakening trend continues, SHIB risks breaking the important support level at $0.00001188. At that point, the downtrend could extend, pushing the price deeper towards the mark of $0.00001141 – or even lower. Conversely, if SHIB can hold the $0.00001188 range, this coin still has a chance to recover. A bounce from this support level could completely bring the price back to the $0.00001317 range.

SHIB/USDT daily chart | Source: TradingViewMore importantly, breaking through and holding the $0.00001317 level as support will be a strong reversal signal. This will provide the basis to negate the current bearish scenario, while also opening up a more optimistic outlook for SHIB in the short term.

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