SHIB Investors Feel the Impact of Market Sell-Off

The ongoing market sell-off has severely impacted SHIB investors, with most holding positions in the red. According to IntoTheBlock data, only 18% of SHIB holders are currently “in the money,” marking a rare low in profitability for this dog-themed cryptocurrency.

Profitability Metrics

IntoTheBlock’s In/Out of the Money indicator classifies addresses based on whether they are profiting (in the money), breaking even (at the money), or losing money (out of the money). As per this indicator:
– 18% of Shiba Inu on-chain addresses are “in the money”
– 22% are “at the money”
– 60% are “out of the money” at SHIB’s current price of $0.000013.

Crypto Market Faces Sell-Off

Cryptocurrencies experienced a significant sell-off in early Friday trading, continuing a bearish week that was highlighted by a market crash on Monday, leading to $1.5 billion in liquidations.

According to CoinGlass data, over $952 million in crypto positions were liquidated during Friday’s sell-off, with major cryptocurrencies reporting losses. SHIB was down 6.31% in the last 24 hours to $0.00001362, hitting intraday lows of $0.00001299 after reversing a three-day increase.

While SHIB’s profitability has reached new lows, this situation could signal a bottom for SHIB’s price, as long-term holders may look to accumulate at a discount.

What’s Next?

Since the start of February, the broader crypto market has been on a downward trend, dragging down altcoins such as SHIB. To date, SHIB is down 28% in February, a month generally considered positive for Shiba Inu price activity.

Expectations are high for March, historically a month where Shiba Inu has always closed in the green, except for March 2023. The cryptocurrency saw a substantial gain of 144.55% in March 2024, suggesting a positive outlook for the upcoming month if past trends hold.

Currently, the daily Relative Strength Index (RSI) is nearing the oversold level of 30, indicating a potential relief rally may initiate once these oversold conditions are confirmed.

If market sentiment improves and demand increases, SHIB could recover. In this scenario, a decisive break above the daily Simple Moving Averages (SMA) at 50 and 200 days at $0.0000177 and $0.0000192 respectively, could suggest a bullish recovery. If the price drops further, SHIB may retest support around $0.000011.