The value of Shiba Inu (SHIB) dropped by over 11% in June 2025, and July isn't looking any better. As of July 2, SHIB was trading at $0.0000113, with daily trading volume falling below $94 million – a sign of serious market cooling. Even more concerning, the 1-day chart structure signals a possible 40% drop. Why is SHIB losing ground? Here are five key factors.
🔹 1. Whale Activity Has Dried Up
Large SHIB holders – the so-called whales – are no longer actively trading. According to IntoTheBlock, transactions over $100,000 have plunged to $1.09 billion, down from over $24 billion in June. This sharp decline in large transactions indicates that big investors are losing interest, reducing liquidity and support.
🔹 2. Shibarium Network Activity Is Falling
Total Value Locked (TVL) in the Shibarium ecosystem dropped from $6.44 million in December 2024 to just $1.78 million now. Lower usage of the network is also negatively affecting SHIB's burn rate, which is essential for reducing supply and boosting price.
🔹 3. Weekly Active Addresses Hit Yearly Lows
Meme coins like SHIB rely heavily on strong retail demand – which is currently missing. Santiment reports that active daily addresses have dropped to just 2,902 in the last 7 days – the lowest in over a year. Without retail participation, SHIB's price faces serious uncertainty.
🔹 4. Meme Coins Are Bleeding Across the Board
Shiba Inu isn’t alone – most meme coins are struggling. In just 30 days, the total meme coin market cap fell from $64 billion to $52 billion, according to CoinMarketCap. This sharp decline shows that traders are fleeing meme tokens, likely turning to Bitcoin, which Bitwise predicts could hit $200,000.
🔹 5. Futures Traders Losing Interest in SHIB
Data from Coinglass shows a significant drop in futures activity for SHIB. Open interest has declined by more than $140 million in less than two months. When futures traders stop placing bets, it reflects a lack of confidence in both bullish and bearish trends – and signals an uncertain future for this dog-themed token.
📉 Technical Analysis: SHIB Faces a 40% Downside Risk
Shiba Inu has formed a classic rounded top – a bearish chart pattern. If it breaks the crucial neckline support at $0.00001058, SHIB could fall another 40% to $0.00000634.
The Relative Strength Index (RSI) hovers around 50, indicating weak momentum for over a month. On the positive side, AO histograms are turning green, suggesting that bears may be losing steam – and that a breakout rally could be brewing.
🔍 Conclusion: What’s Next for SHIB?
SHIB’s price is falling due to:
🔹 inactivity from whale investors
🔹 declining Shibarium usage
🔹 fading retail demand
🔹 weak meme coin sector performance
🔹 falling interest among futures traders
If this trend continues, a drop below $0.000007 could become reality. The market needs a strong catalyst – whether from technical indicators or macroeconomic news – to reverse the current bearish sentiment.
#SHIB , #Shibarium , #shibaInu , #memecoin , #CryptoAnalysis
Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“