Analyzing Shiba Inu’s downward spiral in 2024 – Time to sell?

• SHIB’s long term returns for retailers have declined to -31.7.
• Shiba Inu was the worst performing memecoin in 2024.

Shiba Inu [SHIB], the second largest memecoin by market capitalization, has experienced a sustained decline over the past month. In fact, as of this writing, SHIB was trading at $0.00001325. This marked a 1.62% decline over the past day.

Equally, this period has witnessed the memecoin decline in trading volume. Thus over the past day, SHIB’s trading volume has declined by 20% to $136.4 million.

Prior to this, SHIB had made little gains over the past 7 days with the memecoin rising by 0.77%. However, on monthly charts, the memecoin has dropped by 2.50%. Therefore, overall, SHIB has experienced a downward trajectory.

These market conditions raise questions over the future prospects of the memecoin. And as Santiment’s analysis posits, SHIB has recorded the worst 30-day citing average trading returns.

What prevailing sentiment says

According to Santiment, SHIB has been the worst performing memecoin in 2024. The analysts suggest that the 30-day average trading returns have declined to -1.1% and long-term returns dropped by -31.7%.

Source: Santiment

Additionally, the social discussion has experienced a year-long decline hitting extremely low since July. Such a decline suggests current frustration and indifference among traders especially since small retail traders have been closing their positions.

Source: Santiment

Further, Shiba Inu’s retail traders have continued to close their positions with wallets holding less than 1 billion SHIB hitting the lowest levels since 2022. Such market behavior indicates increased FUD with only 1 billion wallets holding the majority.

Source: Santiment

Based on this analysis, SHIB has underperformed for the last year, but these conditions position the meme-coin for a reversal when Crypto markets stabilize.

What SHIB charts suggest

As noted by Santiment, SHIB has experienced a sustained decline in retail traders and profitability.

Source: CryptoQuant

This phenomenon is further supported by reduced transaction count which has dropped from 11830 to 6430. This indicates lower demand as fewer people are using the network suggesting a warning interest for the memecoin.

Also, these reflect lower trading activity as shown by a 20% decline over the past 24 hours.

Source: IntoTheBlock

Additionally, SHIB’s ownership by concentration shows retail traders hold 26.65%, investors hold 13.4% and whales hold 59.95%. Such a scenario when retail traders are holding less indicates a lack of confidence among small everyday traders.

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Such implies that retail traders have closed their positions due to FUD and lack confidence about the future. This is a bearish market sentiment as smaller investors are exiting the market as they expect further decline.

Therefore, SHIB is experiencing strong negative market sentiment which is pushing retail traders out of the market. If these market conditions hold, the meme-coin will decline to the critical support level of around $0.00001263.