Shiba Inu (SHIB) has been bearish at the start of this month as its price has fallen sharply since September 1. Based on historical data, SHIB’s price could fall further this month as the meme coin has often closed in the red in September.
Shiba Inu starts September in red
Data from CoinMarketCap shows that the price of Shiba Inu has fallen by more than 3% since September 1. This highlights the current bearish outlook for the meme coin. In addition to the price decline, on-chain indicators also paint a bearish picture for the meme coin, indicating that Shiba Inu is at risk of further price declines.
Data from market intelligence platform IntoTheBlock shows that the “profitability” indicator is bearish as 53.17% of addresses are now losing money due to SHIB’s recent price drop. This is important because those currently losing money may sell their tokens to cut their losses, causing the price of Shiba Inu to fall further.
The $0.000010 price level remains a critical price level that Shiba Inu needs to hold as there are 132 Trillion SHIB tokens available to purchase at that price. This represents a significant portion of the meme coin’s current circulating supply. If Shiba Inu drops below $0.000010, these tokens could quickly flood the market as the 342,490 addresses holding these tokens look to cut their losses.
Another bearish on-chain metric for Shiba Inu is its net network growth. The number of daily new addresses in the SHIB ecosystem has been low, highlighting the stagnant adoption of mem coins. This is certainly worrying as meme coins will need a large influx of new investors to achieve significant growth in this bull run.
For now, Shiba Inu whales remain one of the few positives in the memecoin ecosystem, as data from IntoTheBlock shows a surge in large transactions over the past few days. This suggests that these whales are once again hoarding memecoin in the hope that Shiba Inu will bring about price increases in the future.
What historical data suggests about SHIB's prospects
CryptoRank’s data highlights Shiba Inu’s monthly returns over the years, providing an idea of what to expect from the meme coin this September. These historical data show that SHIB has ended the past two Septembers with monthly losses. Shiba Inu suffered monthly losses of 8.25% and 6.43% in September 2023 and September 2022, respectively.
The only time the meme coin posted a monthly gain at the end of September was in 2021, the year it was launched. Therefore, September could once again be a bearish month for SHIB as it has averaged a monthly loss of 3.39% since its launch in 2021. However, this month could be bullish for the Shiba Inu, especially if overall cryptocurrency market sentiment is bullish and a rate cut is possible.
