Analysts believe a massive selling pressure could be triggered when the asset reclaims $0.000011.
Shiba Inu’s (SHIB) recent price action leaves up to 71% of its holders at a loss or a breakeven point. Most of these investors, amounting to 66.85%, are registering losses in their holdings. This bearish turn of events has been ascribed to the latest FUD campaign targeted at Shibarium.
The Data Nerd, a blockchain-based crypto Twitter handle, called attention to today’s unfavorable development, citing data from IntoTheBlock.
Due to FUDs regarding the new $SHIB L2 network, up to 71% are either lost or break even as shown by @intotheblock.
This will create a large selling pressure should the price rises above $0.000011.
Telegram activity has also been falling since 2022. pic.twitter.com/yq3U6HzMSm
— The Data Nerd (@OnchainDataNerd) March 27, 2023
Data reveals a large concentration of SHIB buyers at the price territory between $0.000011 and $0.000014, suggesting that most investors currently witnessing losses on their bags procured the asset within that price range.
Nonetheless, up to 371.9K addresses, accounting for 29.06% of Shiba Inu holders, amassed their SHIB tokens below its current price of $0.00001098. Moreover, data suggests that 52.26K addresses, representing 4.08% of total SHIB holdings, procured their tokens between $0.000010 and $0.000011, currently leaving them at a breakeven point.
As a result of the concentration of most buyers within the price range of $0.000011 to $0.000014, analysts believe Shiba Inu’s eventual surge to the $0.000011 price level could trigger a selling pressure on investors who would look to sell off their assets at breakeven.
Furthermore, the fact that Telegram activity on Shiba Inu has been on a steep decline since 2022 further adds to the angst observed among investors. There are theories that this pattern could add to the selling pressure.
Notwithstanding, these are mere speculations and should not serve as investment advice. Although positive sentiments surrounding SHIB have waned recently, there has also been a massive decline in negative sentiments. In addition, Shibarium developers have addressed the FUD that contributed to the asset’s recent underperformance.
Shiba Inu Registering Modest Gains
SHIB has struggled to reclaim the $0.000011 price territory since dropping below it on March 21. Following the release of the Shibarium documentation and the change of the Puppynet Chain ID to 719, positive sentiments surrounding SHIB have seen an uptick recently.
The asset now registers modest gains, trading for $0.000010098 as it targets $0.000011. With a 2.54% gain in the past 24 hours, Shiba Inu is the second biggest-gaining asset among the top 20 cryptocurrencies by market cap, second only to XRP, which is seeing a 6.08% gain within the time frame.
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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.