🚨 Red Alert for SHIB: Shiba Inu Price Rally May Not Last
Shiba Inu (SHIB) is recovering slightly this week as the crypto market becomes more active again. However, technical and fundamental signals suggest that the meme coin’s rally may not be sustainable, with the risk of a sharp decline looming on the charts.
📉 SHIB Rises but Lagging Other Meme Coins
As of Thursday, SHIB was up to $0.000012, with a 24-hour trading volume of $270 million. That’s still well behind Dogecoin ($2.4 billion) or other meme rivals like Pepe, Bonk, and Pudgy Penguins, which each have over $1 billion in trading volume.
Meanwhile, Pepe and Bonk have been rallying more, clearly reflecting Shiba Inu's loss of ground in the meme coin world.
🐋 Whales are still selling, not accumulating
Data from Santiment shows that whale wallets holding between 10 million and 1 billion SHIB have been selling continuously throughout 2025. This selling pressure is one of the main reasons why SHIB has not been able to bounce as strongly as other meme coins.
📉 Trading volume and open interest are low
SHIB's futures trading volume is also disappointing, with open interest at only $179 million, significantly lower than smaller meme coins like Pepe or Bonk.
This shows that derivatives investors no longer have strong expectations for a short-term breakout of SHIB, reducing the momentum for short-term price growth.
🧱 Shiba Inu Ecosystem Lacks Appeal
In addition to price, the Shiba Inu ecosystem is also facing stagnant growth:
SHIB's layer 2 Shibarium only holds $2.3 million in TVL, which is very low.
Sub-tokens such as BONE, TREAT, and LEASH have also failed to attract users or developers.
This suggests that the project's intrinsic value is in doubt, especially when other DeFi projects are expanding their TVL aggressively.
📉 Technical Signals: On the Brink of Collapse?
The SHIB price chart is currently trading below both the MA50 and MA100 lines, and is below the Supertrend indicator, indicating that the trend is still bearish.
The ADX index has dropped below 20, reflecting a lack of momentum in the uptrend.
The current structure of SHIB is also identified as an inverse cup and handle pattern, a pattern that warns of a deep decline if the support zone is broken.
If SHIB breaks the lower limit of the handle, the price could fall sharply below $0.000010, even approaching $0.000001 if the market deteriorates.
🔻 Summary: Short-term bullish, medium-term bearish risk
Although Shiba Inu has recovered slightly in recent days, technical factors, whale sentiment, and ecosystem weakness all suggest that the rally may be temporary.
Investors should be cautious, especially when SHIB is forming a strong bearish breakout signal and lacks support from trading volume and open interest.
