Shiba Inu (SHIB) Price Prediction: 87% Holders Facing Capitulation "Losses", What Does Capital Outflow Mean?

Since reaching a high of $0.0000176 during intraday trading on May 12, Shiba Inu (SHIB) has fallen by 33%. Due to its poor performance, on-chain data shows that most Shiba Inu holders are currently experiencing unrealized net losses, indicating that the market is capitulating. What does this mean for investors?

SHIB funds are flowing out, 87% of addresses are "out of money"

According to Glassnode, the net unrealized profit/loss (NUPL) indicator for Shiba Inu shows that the meme coin is currently in a state of Capitulation. NUPL measures the difference between the unrealized profit/loss ratio of all holders and the market capitalization, providing insight into whether the market is making profits or losses.

(Source: Glassnode)

According to Glassnode's data, when the NUPL of an asset is negative, market participants will capitulate. This situation occurs when total losses exceed gains, indicating that most holders are at a loss. This reflects periods of panic selling by investors or holding dilemma tokens.

IntoTheBlock's global inflow/outflow data confirms this bearish sentiment. Current data shows that over 87.34% of SHIB holders are currently in a "capitulation" state.

(Source: IntoTheBlock)

When the current market price of the assets held by a certain address is lower than the average purchase cost, that address is considered to have "insufficient funds." This means that if the holder sells the asset at market price, they will incur a loss.

Historically, a negative NUPL typically marks the end of a bear market. It often signals a bottom for a certain asset class, followed by a rebound. There are two reasons this occurs.

First, when many holders are in a loss position, they usually have no motivation to sell. Instead, they choose to wait for the market to recover until they break even. This behavior reduces selling pressure and helps stabilize asset prices. When volatility decreases and prices start to consolidate, conditions are created that encourage people to buy SHIB, potentially driving up the price.

In addition, the capitulation period often eliminates "weak investors," while providing entry opportunities for "diamond hands" (long-term, more confident investors). These buyers accumulate capital during tough market periods, providing the necessary support to reverse the bull market.

SHIB Technical Analysis: Can the bulls reclaim the $0.000012 area?

The current trading price of SHIB is approximately 0.00001161 USD. If selling pressure eases and new buying interest emerges, this meme coin may break through the current resistance level of 0.0000198 USD. After breaking through this resistance level, the price of SHIB is expected to rise to 0.00001362 USD.

However, if the selling pressure intensifies and the fall continues, SHIB may fall to $0.00001105.

(Source: Trading View)

The decline in SHIB's burn rate has intensified the short-term bearish outlook, having decreased by 92% in the past 24 hours. With the reduction of SHIB tokens, the price of SHIB is unlikely to rebound without new demand.

If the token burn is not restored soon, this may delay SHIB's efforts to recover higher prices.

(Source: SHIB Burn)