Shiba Inu Faces Whale Exodus and Liquidity Strain, But Ecosystem Advances Signal Long-Term Resilience
May 28, 2025 — Shiba Inu (SHIB) is contending with significant market headwinds as large-holder participation plunges and liquidity thins. Still, structural developments within the ecosystem could lay the foundation for a longer-term rebound.
Whale Transactions Plummet, Sparking Liquidity Concerns
SHIB has seen a steep 74% decline in whale transactions over the past five days, with large-volume transfers falling from 5.76 trillion to 1.47 trillion SHIB. This exodus of major players has led to a visible liquidity crunch, compounded by a broader slowdown in on-chain activity. Net flows across the Shiba Inu network have dropped more than 80% month-over-month, mirroring the cautious tone across the crypto market amid macroeconomic volatility.
The reduced liquidity has reinforced a resistance band between $0.00001467 and $0.00001470, where persistent sell orders continue to cap upside attempts. CoinDesk Research notes a consistent pattern of lower highs, reinforcing a near-term bearish trend.
Technical Breakdown: Sideways Chop With Downward Bias
SHIB traded within a tight 24-hour range, from $0.00001425 to $0.00001469, representing a 3% intraday swing. The asset found support between $0.00001426 and $0.00001436, though fading buyer interest is evident in volume data.
By session end, SHIB had retraced to $0.00001430, down 1.78% from the high. A modest rebound saw prices lift from $0.00001427 to $0.00001431 in the final hour, a 0.28% gain, signaling tentative demand re-emerging at lower levels.
Notably, the price held a key support band at $0.00001429–$0.00001430 during early morning retests, while short-term momentum improved with the formation of higher lows after 07:56. However, resistance remains intact near $0.00001433–$0.00001435, where sellers re-entered during the 07:55 window.
Long-Term Vision: Fundamentals vs. Market Sentiment
Despite the current pullback, several analysts remain optimistic about SHIB’s long-term prospects. The rollout of Shibarium, a layer-2 scaling solution for the Shiba Inu ecosystem, is seen as a critical milestone that could enhance transactional utility and attract more developers to the network.
Moreover, SHIB’s deflationary strategy—centered around token burn mechanisms—continues to play a central role in bullish forecasts. Changelly projects a price of $0.0001 by 2029, while ultra-long-term models suggest a potential path to $0.01 by 2040, contingent on sustained reductions in circulating supply.
Key Metrics Recap:
- Whale transaction volume: ↓ 74% (5.76T → 1.47T SHIB)
- On-chain liquidity: ↓ 80% (monthly)
- Resistance: $0.00001467–$0.00001470
- Support: $0.00001426–$0.00001436
- 24h range: $0.00001425–$0.00001469
- Last price: $0.00001430
- Short-term trend: Higher lows forming post-07:56; resistance remains overhead
Conclusion: SHIB’s near-term technicals point to caution, with thinning liquidity and retreating whales shaping price action. But as the Shiba Inu ecosystem continues to evolve—particularly through Shibarium and deflationary economics—investors may find reason to remain engaged over a longer horizon.
