hiba Inu, the meme cryptocurrency that has stolen the limelight of crypto communities across the world, started on a bearish note in September.
As per CoinMarketCap, SHIB is below its value by over 3% from September 1st, more than indicating how the meme coin seems to be at a struggle at the moment.
Given the market anticipation of responses based on the token's subsequent performance, experts took to on-chain metrics and historical data to decipher what this may mean for the SHIB investors.
Bearish On-Chain Metrics
According to data from IntoTheBlock, Shiba Inu is currently bearish, as 53.17% of SHIB addresses are now out of the money following the recent price decline.
That means a significant portion of SHIB holders are on losses and might look to cut them, which could add to selling pressure.
The other bearish on-chain metric is the net network growth of the meme coin. The number of new addresses coming onboard daily in the SHIB ecosystem has remained low, indicating stagnation of the adoption of the token.
Historical Data Paints a Bearish Picture
By analyzing the past performance of Shiba Inu in September, data from CryptoRank indeed points towards a bearish performance for the meme cryptocurrency.
It shows that SHIB concluded the past two Septembers with monthly losses - it saw declines of 8.25% and 6.43% in 2023 and 2022 respectively.
Shiba Inu has closed September with a monthly gain only once, in 2021, the year it launched. That tends to suggest September is usually a bearish month for SHIB, given the meme coin has recorded an average monthly loss of 3.39% since its inception.
Whales Remain a Positive Factor
While on-chain metrics and historical data do point toward a bearish outlook for Shiba Inu, one positive factor is indeed the whales in the meme coin's ecosystem.
According to IntoTheBlock data, large transactions have surged over the last few days, indicating that these whales are again accumulating SHIB in the hope of future gains in price.
Whales appear to be undeterred by the current bearish sentiments of Shiba Inu and are quite confident in their long-term conviction of the token.
It is, however, not certain whether whales have the resources and personnel required to offset bigger market pressure and influence SHIB's price to change course.
