Despite Facing a Challenging Period with Declining Prices, Shiba Inu (SHIB) Continues to Have a Strong Foundation of Long-term Holders.

Recent data reveals that 78% of SHIB holders are sticking with their investments, maintaining their positions for more than a year.

Shiba Inu (SHIB) has faced a challenging period with declining prices, yet it continues to have a strong foundation of long-term holders who are sticking with their investments.

According to recent data from IntoTheBlock, 78% of SHIB holders have maintained their positions for more than a year. However, a significant portion of investors are currently facing losses.

Out of the total SHIB holders, 59% are "out of the money," indicating that they are holding the tokens at a price point higher than its current market value. In contrast, only 37% of holders are in profit, while just 4% are breaking even at the time of writing.

These figures highlight the tough situation faced by many SHIB investors, especially considering the massive gains the token saw in 2021, leading to hopes of a potential price recovery.

Currently, the price of SHIB stands at $0.000013, marking a decrease of 0.71% in the past 24 hours. Trading volume has also declined by 2.61%, now sitting at $133.6 million.

This decline in trading volume over the past few months indicates a cooling off of interest in the token, with fewer people actively buying and selling SHIB compared to previous periods.

The decline in trading activity is further emphasized by a drop in community engagement. Over the past week, the Shiba Inu Telegram membership decreased by 0.38%, signaling a decline in investor interest and activity surrounding the project.

However, despite this decline in short-term activity, the fact that 78% of SHIB holders continue to hold their tokens for over a year is a testament to the community's belief in Shiba Inu's long-term value.

This commitment is crucial for the token's ability to weather the current market downturn and potentially recover when conditions improve.

Moreover, the data indicates that new investor interest in SHIB has cooled down significantly. In the past month, only 2% of SHIB holders entered the market.

This lack of influx from new capital signifies that retail investors are not actively flowing into the token as it once did, which could be attributed to the broader slowdown in retail activity during the market downturn.

However, despite the decrease in retail interest, Shiba Inu continues to show strong interest from large institutional players.

The data reveals that SHIB's large transaction volume reached $184.96 million over the past week, suggesting that high-net-worth individuals and institutions are still performing transactions.

This activity could mean that Shiba Inu is still seen as an attractive asset for investors with a long-term outlook or those seeking to diversify their portfolios.

Furthermore, SHIB has shown a strong correlation with Bitcoin, with a correlation score of 0.84 out of 1.0. This suggests that the price of Shiba Inu moves in tandem with Bitcoin's price fluctuations, both up and down.

If Bitcoin begins to see a sustained recovery, Shiba Inu's price could follow suit, benefiting from the overall positive sentiment in the broader cryptocurrency market.

Overall, while the short-term outlook for Shiba Inu may appear bleak with the dip in price and cooling retail interest, its long-term prospects remain tied to the broader cryptocurrency market.

The continued institutional interest in SHIB, coupled with the strong commitment of long-term holders, offers a foundation for potential future gains.

In the coming months, Shiba Inu's price movement will likely depend on a variety of factors, including the broader market's recovery, adoption within the Shiba Inu ecosystem, and any developments that could help decouple the token from its current correlation with Bitcoin.

If Shiba Inu can maintain its strong institutional interest and manage to attract more retail investors, it could position itself for future growth once market conditions improve, making it a token to watch.