Shiba Inu (SHIB) risks falling another 20%

The popular memecoin Shiba Inu (SHIB) is going through hard times, showing consistently bearish dynamics for several weeks in a row..

Holders of the altcoin do not seem to be particularly optimistic about its price prospects, leaning towards selling instead of saving.

Investors are losing confidence in Shiba Inu

According to the analytical platform Santiment, over the past two months, the largest SHIB holders have noticeably slowed down the rate of accumulation, purchasing tokens for only $328 million. This suggests that whales are gradually losing interest in the asset due to its inexpressive dynamics.

SHIB whale balances. Source: Santiment

Retail investors aren't particularly optimistic either.. Currently, only 21% of Shiba Inu addresses are in profit — if they decide to get rid of the asset and wait for more favorable market conditions, the altcoin may face another correction.

SHIB addresses by yield. Source: IntoTheBlock

SHIB price forecast: continued decline

Shiba Inu has been moving within the descending channel for a month and a half. A recent attempt to break through its upper boundary was unsuccessful: if the situation repeats, the price of the altcoin will most likely test the bottom of the pattern as support. Thus, the potential drawdown target is at $0.00002039.

12-hour chart SHIB/USDT. Source: TradingView

However, a rebound from the $0.00002268 support level will help memcoin recover. Breaking the upper channel boundary and consolidating above it will invalidate the bearish thesis, sending SHIB towards $0.00002835.