Shiba Inu (SHIB) surges 15% this week, but 50% of holders still in loss

Shiba Inu (SHIB) has seen a significant price increase of 15% this week, capturing the attention of the market. The meme coin reached $0.00001445, sparking renewed interest and discussions across various platforms. However, despite this rally, the majority of SHIB holders are still facing unrealized losses. The recent gains offer a glimmer of hope, but long-term investors remain stuck in losses from the meme coin’s previous peak.

Data reveals that over 50% of SHIB holders are still in the red, with only 44% in profit and 2% at break-even. This situation is largely due to the timing of their investments. Nearly 80% of SHIB investors joined the ecosystem more than a year ago, many of whom entered during the explosive bull market of 2021 when Shiba Inu hit its all-time high of around $0.00008616. Since then, the price has dropped more than 80%, leaving many investors with significant losses. The dream of quick returns has turned into a waiting game, requiring either conviction or hope to hold through such a decline.

New SHIB investor participation remains weak, with only 2% of holders joining in the last 30 days. This low number suggests that fresh capital hasn’t poured in yet, and most of the recent price action may come from existing whales and loyal traders. Some analysts believe the rally is just warming up, pointing to a breakout from an important resistance level as a potential sign of a much bigger bullish trend.

On-chain data supports the bullish case, with SHIB’s exchange netflows turning negative over the past week. This trend indicates that more coins left exchanges than entered them, suggesting that selling pressure may be dropping as investors feel more confident holding longer-term. However, the Relative Strength Index (RSI) for SHIB has climbed past 70, flashing a classic warning of an overbought asset. Prices that climb too fast can invite sharp pullbacks, and SHIB might cool off soon before regaining strength.

For long-term holders, this rally feels bittersweet. The green candles bring hope but also painful reminders of the price they paid. The recovery has started, but the road to previous highs remains steep. SHIB will need momentum, trust, and patience to reclaim the spotlight. For now, optimism flickers, but caution still whispers. The current situation highlights the volatility and uncertainty inherent in the crypto market, underscoring the risks associated with investing in meme coins. As the market continues to evolve, it remains to be seen whether SHIB will be able to overcome its current challenges and deliver sustained growth for its investors.