SHIB’s profitability metric, which is the percentage of holders that are in profit at the current price, has fallen below 50% indicating that the token is currently in a bearish phase. This is a 60% drop from the previous levels which means that more than half of the SHIB holders are now in the red.
This is in contrast with the first half of the year where majority of investors were profitable when investing in SHIB.
This decline in profitability may result in heightened selling pressure as investors seek to exit their positions and limit their losses. This shift in market sentiment is further illustrated by the decrease in the number of large transactions valued at more than $100,000. In the past 24 hours, there were 82 such transactions compared to 56 in the previous week, pointing to the fact that large investors, commonly known as ‘whales’, may be weakening their interest in the token.
Although the interest has dwindled, large holders are still holding a significant percentage of SHIB tokens, accounting for 73% of the total supply. This focus can be viewed as positive, in the sense that these big investors have faith in the firm, yet negative due to the concentration. Any of these major holders selling a large volume of tokens could be detrimental to the price of the token given the percentage of the total supply they hold.
