Shiba Inu (SHIB) is battling a critical downturn as multiple on-chain indicators suggest a persistent bearish trend, raising concerns among investors.

SHIB Recovery Attempts Fail to Gain Traction

Shiba Inu, a cryptocurrency based on memes, is currently in a precarious position due to multiple on-chain indications showing a negative trend.

U.Today reports that stabilization and recovery attempts around the $0.000014 mark were unsuccessful in giving SHIB any significant upward impetus. An analysis of the on-chain data paints a bleak picture for SHIB.

One is that a very tiny fraction of SHIB holders are making money at the present pricing. With 52% of holders already losing money, it's clear that many investors are taking a hit. When holders aren't making money, selling pressure develops, and the price falls because investors may want to cut their losses.

In addition, the net network growth is showing signs of bearishness, with a small decline of 0.21%.

SHIB New User Growth Shows Bearish Signs

New users joining the SHIB ecosystem seem to be stalling out or moving at a slower pace, which could hinder any potential resurgence. When the number of people using the token drops, the price of the token goes down even further due to decreased demand and fewer transactions.

A further significant indicator, "large transactions," has decreased by 4.95 percent. Used as a gauge for whale activity, it currently indicates that the mammals are absent.

SHIB Sentiment Remains Deeply Bearish

What this means is that big money is getting out of SHIB or is at least reducing its exposure. The general sentiment on SHIB is highly negative, as four of the five primary indicators are in the red.

This gloomy prediction is based on the general market mood and on-chain activity, which both show that Shiba Inu will keep having a hard time.