Shiba Inu (SHIB) Faces Continued Bearish Pressure as Volume Falls and Whales Dump Tokens

Shiba Inu’s price is hovering around $0.000004, down more than 95% from its 2021 peak. Crypto‑market activity has weakened, with overall trading volume dropping about 15% and the Fear & Greed Index sliding to 17. Technical indicators show the token near oversold levels (RSI around 30), a persistently negative MACD and rising Bitcoin dominance above 56%, which pulls capital away from altcoins.

Large SHIB whale positions dating back to 2020 are being reduced, adding further sell pressure. The ecosystem’s tokenomics remain strained: the burn rate is very low relative to the roughly 589 trillion circulating supply, and daily burns remove only a tiny fraction of tokens. On‑chain activity has declined, with fewer unique receiving addresses. Governance concerns resurfaced after the September 2025 Shibarium exploit, where a flash‑loan attack on BONE led to an alleged $4 million loss. Analysts have described SHIB as “dead” and unlikely to recover without a significant shift in market sentiment.