Shiba Inu Faces Declining Demand — Is SHIB Headed for a Deeper Drop?

• Large SHIB holders trimmed positions midweek, adding pressure as realized losses spiked over $200 million.
• Price remains stuck below key resistance, bearish signals stack up with RSI and MACD both weakening.

Shiba Inu (SHIB) has slipped nearly 4.50% this week, trading at $0.00001166 on Friday. Although it gained a minor 0.69% during the day, larger indicators continue to reflect selling pressure. Market caution tied to the Iran-Israel war and concerns over U.S. tariff decisions are affecting speculative tokens like SHIB more than others.

Data from Santiment revealed that wallet activity is shifting. Major holders, particularly those holding between 100,000 to 1 million and 10 million to 100 million SHIB tokens, have reduced their positions since midweek. This has added to negative sentiment, pulling the price down from short-lived rebounds earlier in the week.

Source: Santiment

Between Sunday and Monday, realized losses by SHIB holders surged from -346,000 to -211.2 million. This is the sharpest negative swing since March and hints at waning confidence. These numbers are pointing to increased liquidation by holders unwilling to wait for another potential uptrend.

Technical Indicators Signal Continued Weakness

SHIB briefly tried to recover after bouncing off support at $0.000011 on Wednesday. That uptick came after a 14% decline starting June 13, when the price was rejected at the 50-day EMA. The rejection also lined up with a descending trendline that has remained in play since May, reinforcing the overall bearish pattern.

The RSI on the daily chart is now at 36.54, close to oversold conditions. This level suggests sellers are still dominant. Meanwhile, the daily MACD chart confirmed a bearish crossover last week. Red histogram bars below the neutral line continue to increase, adding weight to predictions of a downward extension.

Source: X

The weekly chart reflects a broader issue. Shiba Inu has posted six straight weeks in the red since mid-May. RSI on the weekly timeframe sits at 40, which is well below neutral. A bearish MACD crossover is also on the horizon, further confirming the downward bias.

Key Levels in Focus as Risk-Off Sentiment Builds

Friday’s trading places Shiba Inu right near daily support. If it closes below $0.000011, the next level to monitor is the April 9 low at $0.000010. The repeated failure to hold above the moving average resistance is a concern and leaves little room for upside speculation.

That said, a post on X dated June 19 observed, “$SHIB is pretty much at the bottom now, seems like it’s approaching the support zone. If it really hits that support, it’ll likely move sideways for a while before the next growth phase.” While sideways movement might slow the losses, the current conditions don’t support a clear rebound yet.

$SHIB is pretty much at the bottom now, seems like it's approaching the support zone. If it really hits that support, it'll likely move sideways for a while before the next growth phase. Stay confident and keep holding or even buy more #SHIB .

I’m sure you won’t regret it. You… pic.twitter.com/T6Gt4SfN3g

— PEPE is friend (@pepeisfriend) June 19, 2025

Resistance remains at $0.000013 on the weekly chart. Until Shiba Inu can close above former trendline barriers and key averages, selling momentum is likely to stay in control.