Shiba Inu, a leading memecoin, finds itself in a challenging market cycle, with recent lackluster performance masking a deeper, long-term bearish sentiment among its holders. While short-term price movements might show minor fluctuations, underlying metrics paint a stark picture of a protracted bear market that could persist for an extended period.
Persistent Bearish Sentiment
Despite some memecoins experiencing minor gains or losses, Shiba Inu's recent stagnation is merely a surface indicator of a profoundly pessimistic outlook among its long-term holders. This widespread bearishness is not just anecdotal; it is firmly supported by critical on-chain metrics that highlight significant holder losses and extreme market conditions, suggesting that any rallies might only serve as selling opportunities rather than harbingers of a recovery.
Key Metrics Confirming the Downtrend
Two primary metrics underscore the depth of Shiba Inu's current bear market. Firstly, the "percent supply in profit" is at an exceptionally low 3.07%, indicating that nearly all circulating SHIB is held at a loss. This figure is comparable to the lowest points seen in recent years and during the 2022 bear market, signifying profound holder losses and extreme market pessimism. Secondly, the MVRV (Market Value to Realized Value) ratio shows a significant deviation below its all-time mean. This extreme deviation mirrors trends observed during the 2022 bear market, which lasted over nine months. If historical patterns repeat, Shiba Inu's current bear market could potentially extend until September 2026. These deeply bearish indicators suggest that even major news, such as a proposed ETF expansion into volatile assets like SHIB, may not be sufficient to lift the memecoin out of its confirmed multi-month bearish cycle.
