Shiba Inu Faces Steep Price Declines Amid Record Token Burn and Whale Sell-Off

18.06.2025 07:22

Shiba Inu (SHIB) has experienced a significant price drop this week, falling to $0.00001160, its lowest level since April 9, marking a 35% decline from its May 12 peak. This downtrend coincides with a broader crypto market sell-off that has affected both Bitcoin and altcoins.

Despite an 809% surge in the daily token burn rate to over 17.69 million SHIB—typically a bullish indicator—the coin’s outlook remains pressured. Whale holdings have shrunk drastically by over 80% in the past 12 months to 34 billion tokens, while smart money holdings declined over 35% to 13.1 billion tokens, reflecting diminished confidence among large holders.

The Shiba Inu ecosystem is also under stress, with Shibarium’s total value locked (TVL) dropping 23% in 30 days to $2.6 million. ShibaSwap, the ecosystem’s largest platform, has suffered from reduced user activity and transaction volume, with daily users dropping from 374 in March to 89, and daily transactions falling from 937 to 141.

Technically, SHIB is in a prolonged downtrend, breaking below its 50-day and 100-day moving averages and nearing a critical support level at $0.00001030. A double-bottom pattern is forming, but if the price breaches this support, further downside is expected.

In addition, the SHIB/BTC trading pair has crashed by 91% since October 2021, indicating strong underperformance relative to Bitcoin. This persistent downtrend has eroded buying pressure, with SHIB struggling to keep pace with BTC-dominated market cycles. The community remains loyal, but investor appetite appears diminished amid a more risk-averse environment favoring reliable assets.