Shiba Inu Token (SHIB) Struggles

Things are not looking good for the Shiba Inu token (SHIB) lately, judging by the price chart of the popular meme cryptocurrency. Losing nearly 55% since December, the Shiba Inu token is currently trading near its yearly lows. Even during positive market fluctuations, like last Sunday, SHIB struggles to break free from its downward trend.

On-Chain Data Insights

Thanks to the transparency of blockchain technology, we can gain insights into what suppresses the value of this beloved meme cryptocurrency. Analyzing on-chain data from IntoTheBlock reveals a substantial accumulation of Shiba Inu tokens in the price range of $0.000014 to $0.000019 per SHIB.

This signifies that 46,240 addresses have amassed 549.56 trillion tokens in this specific price range. Currently, with SHIB priced at $0.0000135, these tokens are underwater, resulting in losses for their holders.

The Burn Address

However, there’s a significant catch: about 410.43 trillion SHIB of this total is held in the burn address used by Vitalik Buterin back in 2021. Consequently, the actual total impacting the market is nearly 140 trillion SHIB, worth approximately $1.89 billion. Each price drop exacerbates losses for holders, generating considerable resistance against SHIB’s price recovery.

This large accumulation of tokens in such a tight range is acting as resistance, leading many holders to seek opportunities to exit at least at break-even as the market navigates frequent fluctuations.