In a market full of coins worth investing in, there are a few meme coins like SHIB that don’t offer much value, be it in terms of use cases or networks. Nevertheless, thanks to its strong community, SHIB surprised the entire room.

However, it seems that the community is no longer as helpful as it used to be.

SHIB remains active below the key resistance

On September 16th, SHIB was listed on Coinbase Pro and people were crazy about it. This meme coin gained 28.87% in 1 day.

This was the highest daily gain since May, and even then the SHIB failed to break the longstanding resistance at 0.0000001. Prices have been stuck underneath since May.

price SHIB by 28.8% | Source: TradingView

But that didn’t stop the SHIB supporters from reacting violently. More than 6.04 trillion SHIB withdrew from the market in 48 hours, similar to July 26th. As a result, the supply on the stock exchanges fell to a 4-month low.

The supply of SHIB on stock exchanges at 4-month low | Source: Santiment

Why stay away from SHIB?

SHIB is an unreliable asset as it is literally viewed as a pump and dump asset class. The circumstances observed yesterday are similar to those during the July rally.

The reason is that the Shiba-Inu community doesn’t take SHIB seriously and only shows up when prices rise in order to earn as much money as possible. The number of active addresses and the transaction volume are often still “dormant” and quite low, but rise suddenly when prices rise.

Trading volume of SHIB | Source: Santiment

In fact, long-term owners also withdraw their money when they show signs of profitability. Yesterday, similar to July, more than 3.3 million billion days of coins were destroyed, showing the movement of ancient coins. If they still hold the coin, the price will remain stable.

lot the day the coin was destroyed | Source: Santiment

The evidence for the pump and dump story is that at the time of writing, the MVRV rate has fallen from level 2 to negative in less than 24 hours.

MVRV from SHIB in the negative area | Source: Santiment

Simply put, the SHIB community is very loyal, but has not brought any real value to the coin until now. However, due to the fan base and the hype surrounding DOGE, SHIB will continue to be switched on and off.

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