The popular altcoin Shiba Inu (SHIB) resurfaced in early May following a tweet by Lucie predicting a thousand percent increase and growing interest in the Shibarium. The total value of locked assets in the Layer-2 network Shibarium increased by $1.5 million to $3.79 million in just three days. However, momentum waned after the peak on May 11, and despite a 106,040% spike in the coin burn rate on May 17, the price decreased by 5.3%. Currently, SHIB attempts to defend the 20-day EMA at $0.00001450, while selling pressure from the 50-day EMA shows a clear “bear trend” outlook. If this crucial defense fails, a short-term decline toward $0.00001200 could be expected.
Bear Pressure on Shiba Inu and Critical Support Level
Charts indicate that the altcoin’s 20-50-100-day exponential moving averages are aligned downward, displaying a classic “bear trend EMA stack.” The Relative Strength Index (RSI), which dropped from 59.7 at its last peak to 52.4, reflects a loss of buyer enthusiasm. The Chaikin Money Flow moved from +0.18 to -0.06, revealing a halt in fresh capital inflows into the market. Unless the price reclaims the 38.2% Fibonacci resistance at $0.00001589 with strong volume, this weakness is unlikely to reverse easily.
If the selling pressure intensifies and the 23.6% Fibonacci retracement point at $0.00001375 is broken, the next support level will be at $0.00001200. The subsequent strongest support lies at the April low of $0.00001029. Conversely, if the $0.00001450–$0.00001600 range is surpassed with a volume increase, a short-term relief rally towards $0.00001700 may be possible.
Meanwhile, open positions in SHIB futures have fallen from $542 million in January to today’s levels, indicating leveraged players have stepped aside, waiting for a clear breakout signal.
On-Chain Data Reveals Whale Exodus
On-chain data, too, contributes to the negative outlook for Shiba Inu. The large wallet net flow decreased by -311% over the last 30 days, illustrating that whales are risk-averse and using the rally as an opportunity to unload assets. Coin transfers to exchanges have increased by four-digit percentages. According to Santiment, the number of active addresses has declined from 238,000 in December to 75,000 today. The rapid decline in individual investor interest is highlighted as a primary reason for the stagnant price.
The investor profitability indicator shows only 17% of holders are in profit, with over 80% waiting in the red. This imbalance suggests that any price recovery will encounter early selling pressure, and sustainable upward momentum will struggle without whale accumulation. The substantial spikes in the coin burn rate are immediately met with sales, confirming that “burn news” often provides exit liquidity. In light of these factors, it is suggested that different strong catalysts are needed for a permanent directional change in SHIB coin by early June.
