- ShibaInu price faces downward pressure due to declining on-chain activity, whale sell-offs, and weak trading volumes, signaling potential further losses ahead.
- Technical analysis also points to bearish trends, suggesting caution for investors in the coming months.
ShibaInu (SHIB), once a star performer in the meme coin universe, is now facing significant challenges. With weakening on-chain metrics, dwindling whale support, and falling trading volumes, the outlook for SHIB appears increasingly uncertain. Let’s dive into what the data reveals and what it could mean for SHIB’s price trajectory in the coming months.
Weak On-Chain Metrics Signal Trouble
ShibaInu’s on-chain data paints a sobering picture. The number of daily active addresses — a key indicator of network engagement — has steadily declined since peaking in February. Fewer active addresses generally signal reduced interest and usage, which is rarely a good sign for price momentum.
Network growth is also slowing sharply, having reached its lowest level in over a year. This decline indicates fewer new addresses being created, a direct reflection of waning demand. Transaction counts have followed suit, dropping to just 2,700 daily, well below the year’s peak of nearly 4,000.
Most concerning is the behavior of SHIB whales. These large holders have decreased their holdings significantly, dumping roughly 25 trillion SHIB coins since the start of the year. Whale selling usually foreshadows further price declines, as these investors tend to have greater market insight and influence.
Whale Capitulation and Negative Realized Profit
A key red flag is the network realized profit/loss (NPL) plunging to negative 134. This means many holders are selling at a loss, reflecting frustration and impatience as SHIB struggles to rebound. When investors capitulate, it often triggers a more prolonged sell-off as confidence erodes.
Supporting this, the 365-day Mean Dollar Invested Age (MDIA) is falling, a sign that longer-term holders are starting to sell. As older coins move into circulation, price pressure typically mounts.
Declining Volume and Burning Activity
Shiba Inu’s trading volume has slumped drastically, lagging behind newer meme coins like Dogwifhat and BUILDon despite SHIB’s much larger market cap. For instance, SHIB’s 24-hour volume stands at $127 million — significantly lower than Dogwifhat’s $366 million, despite Dogwifhat’s market cap being nearly ten times smaller.
Additionally, the daily burn rate of ShibaInu tokens remains minimal. Although there was a 118% spike recently, the total burn equates to less than $400 worth of tokens daily — a tiny amount for a top-tier cryptocurrency. This limited token removal reduces upward price pressure.
Technical Analysis: Bearish Signs Ahead
Technically, SHIB faces resistance at $0.00001760 and is trapped in a bearish flag pattern, which often precedes further downside. The price sits below key moving averages (50-day and 100-day EMA), suggesting sellers remain dominant. The next critical support level to watch is the year-to-date low near $0.00001037.
ShibaInu: Caution Ahead for SHIB Investors
With weak fundamentals, declining whale confidence, and beari sh technical indicators, SHIB’s near-term price outlook is grim. Investors should exercise caution and closely monitor on-chain metrics and volume trends to gauge whether a reversal is on the horizon or if the sell-off will deepen.
