Shiba Inu (SHIB) has started the month on a bearish note, as its price has dropped significantly since September 1. Based on historical data, SHIB could suffer more price declines this month, as the meme coin has often closed at a loss in September.

Shiba Inu Begins September In The Red

Data from CoinMarketCap shows that Shiba Inu is down over 3% since September 1. This highlights the bearish outlook for the meme coin at the moment. Besides the price decline, on-chain metrics also paint a bearish picture for the meme coin, suggesting that Shiba Inu is at risk of further price declines.

Data from the market intelligence platform IntoTheBlock shows that the ‘In The Money’ metric is bearish as 53.17% of SHIB addresses are now out of the money thanks to the meme coin’s recent price decline. This is significant as those currently holding at a loss could sell their tokens in a bid to cut their loss, leading to more price declines for Shiba Inu.

The $0.000010 price level remains a crucial price level that Shiba Inu needs to hold above, as 132 trillion SHIB tokens were bought at that level. That represents a considerable part of the meme coin’s current circulating supply. These tokens could quickly flood the market if Shiba Inu were to drop below $0.000010 as the 342,490 addresses holding these tokens look to cut their losses.

Another bearish on-chain metric for Shiba Inu is its net network growth. The number of daily new addresses in the SHIB ecosystem has remained low, highlighting how the mem coin’s adoption has stagnated. This is undoubtedly worrisome, as the meme coin needs an influx of new investors if it is to experience massive growth in this bull run.

For now, Shiba Inu whales continue to be one of the few positive in the meme coin’s ecosystem, as data from IntoTheBlock shows that large transactions have surged over these past few days. This suggests that these whales are again accumulating the meme coin in hopes of future price gains from Shiba Inu.

Historical Data Shows What To Expect From SHIB

Data from CryptoRank, highlighting Shiba Inu’s monthly returns over the years, has provided insights into what to expect from the meme coin this September. This historical data shows that SHIB ended the last two September with a monthly loss. Shiba Inu suffered a monthly loss of 8.25% and 6.43% in September 2023 and 2022, respectively.

The only time the meme coin has ended September with a monthly gain was in 2021, the year it launched. As such, September could again be a bearish month for SHIB, seeing how it has recorded an average monthly loss of 3.39% in this month since it launched in 2021. However, this month could be bullish for Shiba Inu, especially if the sentiment in the broader crypto is bullish, with a potential rate cut on the horizon.