Shiba Inu (SHIB), a leading meme token, is showing signs of struggle despite attempts to regain an upward trend. On-chain metrics suggest that there are still headwinds to be cautious about. Data from crypto analytics platform IntoTheBlock reveals that only 24.37% of SHIB addresses are profitable, with a significant number of addresses holding the token at a loss, which could lead to selling pressure as the token approaches certain price levels.
The token has experienced intense sell-off pressure since the beginning of the year, with its price repeatedly gaining and losing a zero. SHIB has seen a 4.55% increase over the last 24 hours, signaling its first uptrend in over a week, yet the token has not reclaimed the $0.000009 price level, indicating a potential continuation of a downtrend.
Despite recent upticks, SHIB’s recovery may be hindered by poor performance in key metrics. The token’s burn rate has plummeted by over 94%, and IntoTheBlock data shows a decline in whale transaction volume and daily active addresses, raising doubts about SHIB’s ability to overcome resistance.
The analysis highlights that a large number of addresses purchased SHIB at a price point that now serves as a significant resistance level, which could trigger liquidations if the token’s price rises to that point again.
Overall, Shiba Inu’s journey towards recovery is uncertain as it faces multiple challenges, including a high percentage of unprofitable addresses, a volatile price history, and declining key on-chain metrics that could impede its momentum.
