Despite the recent hype, Shiba Inu (SHIB) has had a bearish September in the meme coin market, which is quickly becoming a standard for other digital assets. The token, like most other projects, has been somewhat bearish lately while still holding significant value. This bearish sentiment has made investors worried especially those who were expecting a better performance after a poor summer session.
SHIB is among these bad performers and the main cause is the generally poor performance among cryptos in the market at this age. Since BTC and ETH are also under downside pressure, it is not unusual that mid and small cap tokens such as SHIB are struggling.
Further, absence of different new updates or changes in the SHIB has also been one of the reasons that accounted for people losing interest. Retail traders are searching for backing and several applications, which most meme tokens do not offer.
The Activity of Whales and Their Influence
Activity of large holders, or whales, also affects SHIB’s performance since it was intended for them to do so. Most of these entities control large parts of the total supply and can cause large fluctuations in the prices. Further, there has been a significant drop in whale activity recently for SHIB resulting in a bear run-an aspect we have observed with precision.
Cryptocurrency whales are always known to have the capability of either supporting the price or causing its decline. In turn, when they dump lots of SHIB, they result in a substantial drop in the token’s price.
On the other hand when they pile up it has a tendency to push the price factor up. The current decline in the whale accumulation indicates the major investors are either less confident or they are waiting to invest when the market is favorable for them.
This is a sign that many of the retail investors view as a negative since it indicates that whales are less active in the market. With the help of these large holders, the token Is less exposed to price fluctuations and overall downfalls. They are slow-moving, have no accumulation of whales and they can also discourage new investors, which all contributes to the bearish trend.
The Road Ahead: What Should Investors Expect from Bearish September?
It will be pertinent to also take a look at the long run’s position in which SHIB could be a suitable investment. They should be more prepared to look for proceeding declines with their risk appreciation before entering into any investment.
There is also a list of many other factors that would come to contribute to the further shifts in the price of SHIB, which includes the general market trends, political changes, and even regulatory changes within the macroeconomic environment.
For the future SHIB will require increased adoption and prove its strengths in the planned product development and partnerships with other crypto projects. It holds its value largely because of its meme status, although there is opportunity for the growth if the SHIB team can build out better utility cases.
Furthermore, luck and any form of good news or event would go along way in reversing the current position and get more investors.
Our Take
Shiba Inu is experiencing a rather bearish September owing to the weak market and a lack of great influence from whales. They should be careful as they look forward to what the market has to offer and other parts of the entire crypto ecosystem.
