Shiba Inu price has had a tough year. The token has decreased by almost 70% compared to last year and more than 90% from its all-time high. As interest in meme coins has diminished, many now wonder if SHIB is slowly fading away.
The concern has increased after CryptoQuant CEO Ki Young Ju said that meme coins are "dead" and referred to reduced dominance and speculation. At first glance, Shiba Inu seems to fit that picture. But data from the blockchain shows more than that.
Meme coins are weak, and Shiba Inu shows it.
The entire meme coin market has weakened. CryptoQuant data shows that the dominance of meme coins has dropped to levels we saw early in 2024, which means less speculation on altcoins.
Shiba Inu follows the same trend. The price has remained below a long-term resistance, and the rises have not held. Wallets belonging to experienced and active traders have steadily reduced their SHIB exposure over the year.
It shows that traders are not betting on quick rises. Simply put, knowledgeable traders do not expect sharp or rising prices.
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New data on derivatives confirms this picture. Over the past 30 days, most traders have reduced their holdings in futures contracts. Apart from the largest wallets, few are using leverage. This shows that traders are cautious and do not believe in a quick or strong rise.
Simply put, speculation has disappeared. It supports that meme coins no longer drive the market as they once did. But speculation is just one side of the coin.
Whales and Holders buy more when coins leave exchanges.
Despite weak price performance, long-term behavior shows a different picture.
The number of Shiba Inu holders, that is how many wallets own SHIB, has increased throughout the year. It started near 1.46 million and has now grown to about 1.54 million. The increase has been uneven, but the trend is positive even though the price has dropped significantly.
Data on whales is even more interesting.
Over the past year, large holders have increased their SHIB holdings by about 249%, according to the image above. Mega-whales have increased their holdings by approximately 28.5%. At the same time, exchange holdings, that is how many tokens are on trading platforms, have decreased by nearly 22%. Fewer coins on exchanges often means less immediate selling pressure.
This trend has strengthened recently. Just over the past 30 days, whale holdings have increased by more than 61%, and outflows from exchanges were highest during the same period.
It does not look like panic or abandonment. It looks like investors are slowly accumulating.
But it is important to remember that derivative traders are not participating. Apart from the largest addresses, leveraged positions remain low. Whales are early, but they are not aggressive.
Shiba Inu's price structure is still weak, but a turnaround may be on the way.
SHIB price is still sensitive, but there is hope left.
On the three-day chart, Shiba Inu is trading within a long-term descending wedge, a pattern that often turns positive if the price breaks upward. Recently, an important signal emerged.
Between December 3 and 12, the Shiba Inu price made a lower bottom, but the Relative Strength Index (RSI), a momentum indicator, made a higher bottom. This positive divergence shows that selling pressure has weakened, increasing the chance of a trend reversal.
Key levels mean more now than stories.
The first resistance is near 0.0000092 USD. A clear breakthrough above this level would show a breakout from the upper trend line that has restricted the price since September. If confirmed, the next resistance areas are at 0.000010 USD, 0.000011 USD, and 0.000014 USD, which correspond to the latest major peak. Keep in mind that only a breakthrough above 0.0000092 USD can completely dismiss claims of 'dead coins.'
On the downside, the structure weakens below 0.0000075 USD. If the price stays below this level, the trend reversal is invalidated, and downside risk increases again.
Shiba Inu is not dead, but it is also not strong. Speculation has disappeared, traders are cautious, and quick profits are unlikely. Despite this, the number of holders is increasing, large investors are buying more, and exchange balances are decreasing, indicating that the network has not been abandoned.
If an altcoin cycle returns, Shiba Inu could get new life. Right now, it is survival mode, and we are waiting for stronger confirmation.
