📰 Developing Story: SHIB Faces Downside Risk if Supply Reduction Falters
New York, NY – Wednesday, December 10, 2025 – 7:42 PM EST
Amidst the growing optimism surrounding Shiba Inu (
$SHIB )'s "oversold" status and low exchange reserves, a critical cautionary note is being sounded by both community members and technical analysts. The long-term success of SHIB hinges almost entirely on its ability to sustain a significant rate of supply reduction.
Analysts warn that if the current momentum in the community's token burn initiatives is not maintained, the asset remains exposed to considerable downside risk.
$ONDO With a colossal circulating supply, the key risk is that supply begins to outstrip demand (supply surpassing demand).
$UNI The Critical Equation
The prevailing concern is simple economics: if the volume of tokens being burned (destroyed) slows down, and new buying interest (demand) also stagnates, the massive outstanding supply will continue to exert a downward pressure on the price. For SHIB to achieve the lofty price targets set by some analysts, the deflationary strategy must be executed with sustained and increasing force.
This warning serves as a crucial reminder that while technical setups can offer short-term opportunities, the fundamental challenge of SHIB’s tokenomics—managing its immense supply—remains the primary determinant of its long-term viability and ultimate price potential.
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