Shiba Inu (SHIB), one of the most popular meme coins in the crypto world, is facing renewed pressure. The coin has dropped sharply over the past few days, and investor sentiment is turning bearish as key on-chain metrics worsen.
SHIB Price Slips Below Key Support Levels
As of Saturday, Shiba Inu’s price fell to $0.00001238, marking its lowest point since April 22. The meme coin is now down nearly 30% from its May peak of $0.00001755 — officially entering bear market territory.
SHIB’s decline isn’t happening in isolation. The broader cryptocurrency market is also under pressure. Bitcoin, for example, has slipped from its record high of $111,900 last week to around $103,000, dragging altcoins like SHIB with it.
Whale Activity Signals Weak Confidence
One of the biggest red flags for Shiba Inu right now is the ongoing sell-off by whale investors — large holders who can influence the market with a single transaction.
At the start of 2025, whale wallets held around 743 trillion SHIB tokens. That number has now fallen to 723 trillion, indicating significant outflows. When whales reduce their holdings, it typically signals expectations of more downside to come.
Whale selling pressure is often seen as a bearish signal, especially when paired with weakening fundamentals.
Shiba Inu Burn Rate Slows Down
Another concern? SHIB’s token burn rate, which had been a major narrative for reducing supply and boosting price, is slowing down. Earlier this year, it wasn’t unusual to see over 1 billion tokens burned in a single day.
This week, however, the biggest recorded burn was just 18 million SHIB — a significant drop in momentum. Fewer burns mean more supply remains in circulation, potentially dampening long-term price support.
Shibarium’s Struggles vs. Rising Competitors
SHIB’s layer-2 blockchain, Shibarium, hasn’t gained the traction investors had hoped for. Its total value locked (TVL) — a key measure of how much is staked or locked on the network — is just $2.92 million.
For comparison, Unichain, a new layer-2 solution from Uniswap, has already attracted over $600 million in TVL, highlighting SHIB’s uphill battle in attracting developer and user interest.
SHIB Technical Analysis: Bearish Pattern Forming
Looking at the daily chart, SHIB has broken below both its 50-day moving average and the lower trendline of a rising wedge — a classic bearish technical pattern.
If selling pressure continues, analysts are watching for a potential retest of the 2025 low at $0.00001033, which would represent another 16% drop from current levels.
What This Means for Investors
- Short-term traders should be cautious, as SHIB appears to be in a sustained downtrend.
- Long-term holders may want to wait for signs of recovery or stronger burn activity before re-entering.
- New buyers should be aware of key resistance at $0.00001400 and support around $0.00001033.
While meme coins like SHIB can rebound quickly, the current outlook suggests more downside unless whale behavior, burn rates, and network activity reverse course.
