Shiba Inu (SHIB) started the month on a bearish note as its price fell significantly since September 1. Based on historical data, SZIB could see further price declines this month, as the meme coin has often ended September with a loss.
Shiba Inu starts September in red
Data from CoinMarketCap shows that Shiba Inu is down over 3% since September 1. This underscores the bearish outlook for the meme coin at the moment. In addition to the price drop, on-chain indicators are also painting a bearish picture for the meme coin, suggesting that Shiba Inu is vulnerable to further price declines.
Data from IntoTheBlock Market Intelligence Platform shows that the “In The Money” indicator is bearish because 53.17% of SHIB addresses are now out of the money thanks to the recent price drop in the meme coin. This is significant because those currently holding it at a loss could sell their tokens to cut their loss, which would lead to further declines in Shiba Inu prices.
The $0.000010 price level remains the key price level above which Shiba Inu needs to stay, as 132 trillion SHIB tokens were purchased at this level. This is a significant portion of the meme coin’s value current supply in circulation. If Shiba Inu falls below $0.000010, these tokens could quickly flood the market as the 342,490 addresses holding these tokens will seek to limit their losses.
Another bearish on-chain indicator for Shiba Inu is the net growth of the network. The number of up-to-date addresses per day in the SHIB ecosystem remained low, showing how the meme coin’s adoption has stagnated. This is undoubtedly worrying, as the meme coin needs an influx of up-to-date investors if it is to experience massive growth this bull run.
For now, Shiba Inu Whales continues to be one of the few positives in the meme coin ecosystem, as data from IntoTheBlock shows that vast transactions have skyrocketed over the past few days. This suggests that these whales are accumulating the meme coin again in hopes of future price gains from Shiba Inu.
Historical data shows what to expect from SHIB
Data from CryptoRank, highlighting Shiba Inu monthly returns over the years, gave insight into what to expect from the meme coin in September. This historical data shows that SHIB ended the last two Septembers with a monthly loss. Shiba Inu suffered a monthly loss of 8.25% and 6.43% in September 2023 and 2022, respectively.
The only time a meme coin ran out September with a monthly profit in 2021, the year it was launched. As such, September could once again be a bearish month for SZIBconsidering it has recorded an average monthly loss of 3.39% this month since its launch in 2021. However, this month could be bullish for Shiba Inu, especially if sentiment in the broader cryptocurrency market turns bullish and a potential interest rate cut appears on the horizon.
Featured image created with Dall.E, chart from Tradingview.com
