Shiba Inu Investors Are Bearish On The Meme Coin, But A Rebound Could Be Imminent: Santiment

An analysis by the on-chain analytics platform Santiment recently revealed the current sentiment in the Dogecoin (DOGE) and Shiba Inu (SHIB) ecosystems.

An analysis by the on-chain analytics platform Santiment has revealed the current sentiment in the Dogecoin (DOGE) and Shiba Inu (SHIB) ecosystems, providing insights into the future trajectory of these meme coins.

According to Santiment, Shiba Inu investors are currently bearish on the meme coin, based on the low level of social discussion toward SHIB. This has been declining throughout the year as the bearish outlook rises.

"Shiba Inu investors are notably bearish on the meme coin. This is evident from the low level of social discussion toward SHIB, which has been noted to be extremely low since late July. This metric also declined throughout 2024, showcasing the rising bearish outlook toward the meme coin.

This feeling of indifference and frustration is understandable, as smaller retail traders have been observed offloading their SHIB holdings in a hurry. Data from the market intelligence platform IntoTheBlock also confirms that these retail investors aren’t as bullish as you’d expect, as wallets with less than 1 billion SHIB only hold 11.7% of the meme coin’s supply.

On the other hand, Shiba Inu whales continue to account for almost 60% of the meme coin’s supply. As a result, smaller investors are frustrated, and larger investors are left holding the bag."

In contrast to Dogecoin, where retail traders are accumulating the meme coin, Shiba Inu's retail traders are showing "tremendous relief." The accompanying chart showed that the percentage of supply held by wallets with less than 1 billion SHIB is at its lowest since November 2022.

"Unlike Dogecoin, whose retail traders are showing signs of accumulating the meme coin, Shiba Inu’s retail traders are showing tremendous relief. The chart above shows the percentage of supply held by wallets with less than 1 billion SHIB at a 15-month low.

This indicates a significant level of FUD occurring on the network, with Shiba Inu whales holding the vast majority of the supply. The bearish sentiment among these Shiba Inu investors could also be due to the coin’s underperformance this year.

Santiment remarks that the meme coin has “essentially performed as a worse-performing Dogecoin in 2024.” The 30-day average trading returns are down at around -1.1%. On the other hand, the long-term returns have declined drastically to -31.7%.

This bearish outlook for Shiba Inu could change soon enough as Bitcoin enjoys a bullish reversal. Data from IntoTheBlock shows a strong positive price correlation between the meme coin and the leading crypto. As such, Shiba Inu is bullish whenever Bitcoin is.

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