• The percentage of SHIB wallets that are in profits has dropped to 47%, marking the lowest level in three months.
• The declining MVRV ratio also indicated that traders were seeing reduced unrealized profits on their holdings. 

Shiba Inu [SHIB] was trading at $0.0000186, at press time, after a slight 0.9% gain in 24 hours. Despite this, the meme coin remains down nearly 7% in the last seven days. 

One factor affecting SHIB’s performance could be a decline in wallet profitability, which has dampened investor sentiment.

Wallets in profit hit a 3-month low 

The number of profitable Shiba Inu wallets has dropped to 676,500 addresses, marking the lowest level in three months. At press time, only 47% of SHIB holders were profitable, while 49% were sitting in losses. 

Going by past trends, SHIB’s price rally coincides with a rise in the number of profitable wallets. Therefore, if more traders experience losses, it could result in further dips for SHIB.

Traders looking to minimize their losses might also exert additional sell-side pressure on the meme coin, causing a pullback.

Is a declining MVRV good for price? 

Shiba Inu’s Market Value to Realized Value (MVRV) ratio has dropped to 0.907, marking the lowest level since early November 2024. This drop indicates that the average holder is seeing fewer profits from their holdings.