The long-term confidence in Shiba Inu (SHIB) continues to erode as the meme token struggles with fundamental challenges. The price has found it difficult to retain investor support throughout 2025, with every rebound proving shallow and the token remaining deep in the red on a yearly basis. A recent minor recovery from lows below $0.000007 to the $0.0000075 range was quickly undone by a fresh setback over the weekend, causing SHIB to slip in market rank below networks like Uniswap and Canton.
A core issue is the enormous token supply. While token burns were once promoted as a long-term solution, this narrative has weakened significantly. Burn activity has slowed sharply, with only small amounts of tokens being removed from circulation, making meaningful supply reduction appear unlikely given the hundreds of trillions of tokens still in existence.
The anticipated ecosystem growth via the Shibarium Layer-2 network has also failed to materialize as a catalyst. Adoption has been minimal, with few significant projects launching that could stimulate usage for SHIB or its ecosystem tokens like BONE and LEASH. Promised initiatives in gaming, the metaverse, and infrastructure have seen deadlines pass without flagship products being delivered, further eroding trust.
Community concerns are compounding these technical and developmental issues. Inconsistent communication from the core team, questions about transparency and leadership visibility, and influential accounts associated with the Shiba Inu brand promoting other tokens have disappointed loyal followers.
From a technical analysis perspective, SHIB is at a critical juncture. While it has begun to base and push higher from recent lows with improving momentum indicators, it faces a dense resistance stack. The immediate test is the 26-day Exponential Moving Average (EMA), which has capped every significant rebound during the downtrend. A clean break and hold above this level could shift the narrative, but major resistance from short-term and midterm moving averages lies above, making any talk of a sustained recovery or "zero removal" premature.
