Shiba Inu (SHIB) Is Currently Experiencing an Identity Crisis

SHIB seems to be losing steam quickly due to poor fundamentals, waning whale interest and a lack of leadership.

Shiba Inu is currently experiencing an identity crisis as it is nowhere near its own version from 2021. SHIB seems to be losing steam quickly due to poor fundamentals, waning whale interest and a lack of leadership.

Large SHIB holders, especially those with trillions of tokens, are vanishing according to on-chain data, which is a concerning trend. While smaller holders have barely increased, wallets holding between 1 trillion and 10 trillion SHIB have recently seen a decline of more than 2%

This change is highlighting the waning interest of early investors who once had high hopes for SHIB to become a long-term moonshot.

This is especially concerning given that the total number of smaller SHIB holders, namely those with less than 100 million tokens, has remained nearly unchanged. It seems that only a small portion of traders are accumulating at current price levels.

Concern is heightened by the sharp decline in large transactions. By April 12, the metric had fallen to just 15 from a peak of 112 large transactions on April 7. This sharp drop indicates that institutional or whale interest is waning. This creates a negative impression of SHIB's momentum when combined with the declining volume of transactions.

The data on In/Out of Money is equally instructive. As of right now, only 10% of SHIB holders are profitable at current prices (~$0.0000123), and 88% are underwater. This indicates that the great majority of SHIB's circulating supply is sitting in unrealized losses with nearly 900 trillion tokens being out of the money.

The 50, 100 and 200 EMAs are important moving averages that SHIB has been struggling with since early 2024 and it is currently trading below all three. For a brief moment, the meme coin tried to break through resistance at $0.0000128 but was unable to maintain the line.

Without an outside catalyst, a breakout appears less likely as volume fades and the RSI remains in neutral territory. SHIB is fundamentally undirected. Now that Shytoshi Kusama rarely makes public appearances and there have been no significant ecosystem updates, the coin is only surviving on brand memory. There are no innovative alliances, no road map and no alluring value proposition other than wishful thinking.

The market as a whole may go into a frenzy and SHIB's once-dominant trillionaire holders may continue to fade into the past unless the Shiba Inu team produces a major development soon.