$SHIB

Shiba Inu (SHIB) September Curse Puts 50% of Investors at Risk

Shiba Inu (SHIB), the popular dog-themed meme coin, has seen its price drop by 44% over the past 90 days. This trend raises concerns that SHIB could face a further decline, potentially locking it into the historically weak performance known as the “September Dip.”

This on-chain analysis delves into the potential for further price declines and their potential impact on SHIB holders.

Shiba Inu Indicators Point to Little Chance of Recovery

A review of Shiba Inu’s price performance shows that the last time it recorded monthly gains was in May. Since June, the tide has turned, with some market participants suggesting that the broader market may be slipping into a bear phase.

While some holders may be hoping for a better performance this month, the Network Value to Transactions (NVT) ratio suggests that the chances are slim. Additionally, historical data from the 2021 bull market shows that September has typically been a quiet or bearish month for SHIB.

The NVT rate measures how quickly a cryptocurrency’s market cap is growing relative to the transaction volume on its blockchain. If the transaction volume is higher than the market cap, it could indicate that the cryptocurrency is undervalued.