Shiba Inu Drops 8.4% Monthly, Long-Term Holders Remain Bullish

Shiba Inu has experienced a decline of 8.4% over the past month, yet long-term holders remain optimistic. The balances and addresses of these holders have reached new all-time highs, indicating a strong belief in the asset's potential for recovery and future gains. According to data, hodlers’ balances have reached an all-time high of 787.6 trillion SHIB, out of a total held balance of 984.7 trillion SHIB. This shows that long-term holders continue to dominate SHIB ownership. Additionally, the number of Hodlers’ addresses hit a record high of 1.11 million in the past day, coming from a total of 1.4 million addresses holding the memecoin.

The sharp rise and steady growth in long-term holders’ balances and addresses reflect the optimism among SHIB’s long-term investors. The increased balance while addresses are also rising implies that while short-term holders are selling and closing their positions, long-term holders are holding on. Therefore, LTHs expect prices to recover and make more gains. Such perception suggests strong confidence in the market. With LTHs still optimistic, it seems these positive sentiments are experienced across the market. As such, Shiba Inu’s aggregated funding rate is holding within the positive range and has remained so over the past two days. This implies that investors are bullish and are opening long positions, reflecting strong confidence with a potential price recovery.

Although long-term holders are still bullish, SHIB is experiencing significant losses on its price charts. In fact, as of this writing, Shiba Inu was trading at $0.0000122. This marked a 0.85% decline over the past 24 hours. Equally, the memecoin has declined on weekly and monthly charts, dropping by 3.67% and 8.42%. Despite the recent decline, Shiba Inu is showing signs of recovery in demand. Its spot netflow, which had been positive for five days, has now turned negative. This shift indicates that exchange outflows are surpassing inflows, reflecting strong bullish sentiment as buyers return to accumulate the asset. Further supporting this trend are a positive order imbalance and delta. These metrics show that the market is experiencing more executed buy orders than sell orders. Over the past day, investors have acquired over 1.57 billion tokens.

Historically, increased demand has preceded price recovery and increase. Therefore, if the bullish sentiments among long-term holders and retailers hold, Shiba Inu could see a price recovery. A recovery here could see the memecoin reclaim $0.000013. A move above here could strengthen the memecoin to break out of the descending triangle. Conversely, if the move by bulls fails, the memecoin could dip to $0.000011.