Shiba Inu (SHIB) traders are losing faith in the meme token as its price experiences a downward trend, while long-term holders remain committed to the token. The percentage of long-term holders on the network has reached 65%, with the percentage of short-term holders dropping to 4%.
This modification in market action may indicate that traders are becoming more cautious in their attitude to SHIB, with a greater proportion of holders opting to keep the token for the long term.
In spite of the lack of price momentum, the proportion of long-term holders reaching shows that these holders trust in the project’s long-term potential and are prepared to hold onto their SHIB tokens during the present slump.
Why is Shiba Inu Lagging?
One of the main reasons behind the lack of price momentum is the lack of drivers for assets like Shiba Inu that are not tied to any trending areas of the crypto industry.
This has contributed to the stagnating burn rate on the network. Shiba Inu’s burn rate has seen a significant decrease due to the lack of network activity. This could mean that fewer people are using the network or that the token has lost its appeal to investors.
The token’s price had been soaring earlier this year, but it has since struggled to gain momentum. Shiba Inu’s technical bias is still positive, and the cryptocurrency continues to derive support from a short-term uptrend that has been in play since late January.
Meanwhile, SHIB’s medium-term bias is looking good after the cryptocurrency broke to the north of a long-term downward trend line in early February that had been in play since last August. A retest of earlier monthly highs is looking likely, especially in light of the recent “golden cross.”
Shiba Inu developers are hoping to take the bulk of SHIB trading off of the Ethereum blockchain soon with the launch of their own scaling solution, Shibarium. The upcoming layer-2 Ethereum scaling solution protocol is touted to facilitate the rapid expansion of Shiba Inu’s web3 ecosystem. At press time, the meme token is worth $0.00001359.
