In the past 24 hours, Shiba Inu (SHIB) has tumbled 5.51%, significantly underperforming the broader cryptocurrency market, which declined only 1.36%. The sharp correction stems from a confluence of bearish catalysts: renewed fears of a whale-driven sell-off, the abrupt halt of SHIB’s token-burning mechanism, and volatility triggered by the recent launch of SHIB perpetual futures on Coinbase.
A major source of market anxiety emerged on December 18 when a long-dormant whale wallet—holding an astonishing 16.4% of SHIB’s total supply—transferred 469 billion SHIB tokens, valued at approximately $3.6 million, to the OKX exchange. This wallet, historically linked to the 2021 peak where it offloaded 1.9 trillion SHIB, still retains a massive hoard of 96.6 trillion tokens worth over $722 million. Large transfers to centralized exchanges are often interpreted as a precursor to selling, particularly in low-liquidity environments—a concern amplified by SHIB already trading near yearly lows. Such whale movements can quickly ignite panic among retail investors, further pressuring prices downward. Market participants are now closely watching whether the whale’s remaining position remains untouched or if further transfers signal an impending dump.
Compounding the negative sentiment, SHIB’s token burn mechanism—once touted as a key deflationary driver—ground to a complete halt on December 18. According to data from Shibburn, only 552 tokens were burned that day, a collapse from over 7 million the previous day and a 96.96% drop in the 30-day burn total. Token burns are designed to reduce SHIB’s enormous circulating supply, which exceeds 589 trillion tokens. Their sudden cessation removes a psychological and technical support that had previously attracted speculative traders betting on artificial scarcity. With trading volumes already subdued, the absence of burn-related buying pressure left the market vulnerable to sustained selling.
Adding fuel to the fire, SHIB perpetual futures launched on Coinbase on December 15, but the new derivatives market coincided with a 16% price decline. According to CoinGlass, leveraged long positions have borne the brunt of the fallout: on December 19 alone, $1.18 million in longs were liquidated compared to just $86,000 in shorts. The timing proved unfortunate, as retail traders likely entered over-leveraged long positions near the critical support level of $0.00000790. When that level broke, it triggered cascading liquidations. Compounding the volatility, SHIB futures on Coinbase feature a 1,000x contract multiplier, magnifying both gains and losses—and in this case, accelerating the downward spiral.
Despite these headwinds, SHIB’s Relative Strength Index (RSI) now sits at 29.29, edging into oversold territory and hinting at possible short-term exhaustion among sellers. However, a meaningful recovery remains uncertain. The token’s ecosystem lacks fresh catalysts, and its supply remains highly concentrated—top ten wallets collectively control roughly 65% of all SHIB in circulation. This concentration poses a structural risk, as any coordinated movement by large holders could overwhelm thin order books.
Looking ahead, all eyes are on the $0.00000680 support level, which marked SHIB’s low in October 2025. Whether this floor holds will likely depend on two key developments: signs that the whale’s remaining tokens stay off exchanges, and any revival in the token burn rate. Until then, SHIB’s path appears fraught with fragility, caught between macro market sentiment, on-chain behavior of dominant holders, and the destabilizing influence of newly introduced leverage.
