By George Ward
Analysts say SHIB’s price drop to $0.000011 could trigger significant selling pressure. On-chain data shows that the recent price movement of SHIB has resulted in over 71% of its investors experiencing a loss or reaching the breakeven point.
Most of these holders, accounting for 66.85%, hold positions resulting in losses. This negative outlook on events is attributed to the most recent FUD campaign targeted at Shibarium.
Crypto Twitter member Data Nerd highlighted this unfavorable development by referring to data sourced from IntoTheBlock. As a result of the FUD surrounding the new $Shiba Inu L2 network, up to 71% of investors are either at a loss or break even.
This situation could lead to substantial selling pressure if the price of SHIB goes beyond $0.000011. Based on data analysis, many SHIB investors purchased the asset between the price range of $0.000011 and $0.000014, meaning those investors currently hold their SHIB tokens in losses.
Another Reason For The Current Selling Pressure
However, around 371.9K wallet addresses, equivalent to 29.1% of SHIB holders, acquired their tokens at a price lower than $0.00001098. In addition, 52.26K wallet addresses, accounting for nearly 4.1% of the total Shiba Inu holdings, secured their tokens between $0.000010 to $0.000011, resulting in neither profit nor loss.
Investors have become increasingly worried about the significant decline in social media activity on SHIB since last year, which may be another reason for the current selling pressure. Despite the recent drop in positive sentiment towards SHIB, there has also been a considerable decrease in negative sentiments surrounding it.
Furthermore, the developers of Shibarium have taken steps to address the FUD, which played a role in the asset’s recent lackluster performance. It is important to note that cryptocurrency investments are subject to high volatility and uncertainty.
Therefore, investors should carefully consider their risk tolerance and research before making investment decisions. At the time of writing, the cryptocurrency has lost 1.9% of its value in the last 24 hours and 6.6% in the last 14 days.