One of the most prominent meme coins, Shiba Inu saw the value of SHIB drop as much as 15% in the last 24 hours. Although it has recovered slightly, the asset is still continuing its sharp decline that magnified over the last day. But just what could be driving the asset to continue this fall?
The answer may well lie in investor behavior, especially in the inherently volatile meme coin market. Data regarding the length of time in which investors hold onto SHIB can provide answers regarding the asset’s price action over the last month.
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Shiba Inu Faces 15% Drop in 24 Hours; But Why?
The digital asset market has become one of the most prevalent in the financial sector this year. That was especially clear in the first three months of the year, as it dominated discourse. IN March, that excitement reached unprecedented levels, with market leader Bitcoin trading for $73,000 and an all-time high.
That extended to the meme coin market, which saw traders flock to the subsect. Among the best performers was Shiba Inu (SHIB) which reached a $0.000045 high that month. However, this has been starkly corrected since then. Moreover, Shiba Inu has seen those struggles greatly increase, as SHIB crashed as much as 15% in the last 24 hours.
Those losses extend to the last 30 days when the asset has dropped more than 27%. But the biggest question is why? Well, data from IntoTheBlock shows that it may be due to investor activity. Specifically, the holding time of the transacted coin indicator offers a greater view of investor activity with the asset.
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This data set shows insight into investor confidence regarding the asset. On April 30th, when SHIB began its significant drop, the average holding time was one month. This shows that investors who bought during the rally in March were becoming active. Subsequently, the influence of those traders has severely impacted the price.
However, the overall market condition is still a large factor in the asset. Shiba Inu is not the only asset struggling, as cryptocurrencies across the board have noted losses this month. Even Bitcoin has been down as much as 11% since the Halving took place on April 19th.
Alternatively, there is still hope for Shiba Inu to make a comeback. Crypto analyst Ali Martinez has recently noted his observation of a bull flag forming on the assets chart. Moreover, he predicted a potential rally to $0.00007 for the meme coin mainstay.
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