Shiba Inu (SHIB) lost more than 11% of its value in June 2025, and the same trend appears to be creeping up in July. As of July 2, the Shiba Inu price was trading at $0.0000113, while daily trading volumes had shrank to only $94 million. Five key reasons explain why SHIB is falling and will most likely continue to drop in the coming weeks.
Top Reasons Why Shiba Inu Price Is Not Recovering
The five main reasons that have made the SHIB price drop by 11% in one month include the following:
- SHIB whale inactivity
- Declining network activity
- Declining active addresses
- Poor meme coin performance
- Reduced interest from futures traders
Whale Transactions are Falling
The top reason why the Shiba Inu price is falling is a lack of interest from whale wallets that often influence price movements. These addresses have gone quiet, with IntoTheBlock data showing that large transactions of more than $100,000 are currently at 1.09 trillion, which is more than 24 times lower than the 24 trillion that was recorded in June.
When whales are not active, the Shiba Inu price prediction for July becomes negative, because there is no demand from traders that would buy a large volume of tokens.
Shibarium Network Activity is Declining
The other reason is a falling TVL on the Shibarium network. According to DeFiLlama data, this TVL was at $6.44 million in December 2024, and since then, it has dropped to $1.78 million. Whenever this happens, it is bound to have a negative implication on the Shiba Inu price. Besides, the falling activity has also negatively affected the SHIB burn rate.
Weekly Active Addresses Hit 1-Year Low
Top meme coins, including Shiba Inu, perform based on how high the retail demand is, and currently, it is notably low. In fact, Santiment shows that daily addresses in the last seven days have fallen to 2,902, which is the lowest in more than one year. If there are no retail traders interested in buying SHIB now, the price faces uncertainty, and this explains why it has been falling.
Meme Coins Continue Underperforming
The drop in Shiba Inu price is not unique to this coin alone, because most meme coins are also losing their value. In just 30 days, the total market cap of meme coins has dropped from $64 billion to $52 billion per CoinMarketCap data. Losing that much value within a short time shows that traders are not willing to buy meme tokens, and they could be moving to Bitcoin, as Bitwise predicts BTC may hit $200,000.
Futures Traders Are Not Showing Interest in SHIB Price
Data from Coinglass shows that traders in the futures market are no longer willing to open new positions on the Shiba Inu meme token. Whenever this happens, it indicates that those who open long and short positions are not willing to bet on how the SHIB price will perform in the future. With more than $140 million lost in open interest in less than two months, the future for this dog-themed token remains bleak.
Will Shiba Inu Price Crash By Another 40%?
The Shiba Inu price has formed one of the most typical bearish chart patterns, which is a rounded top. This shows that the fall in price has been gradual, and with the neckline support level of $0.00001058 hanging by a thread, SHIB is facing a 40% decline to $0.00000634.
This negative outlook on how much further the SHIB price could drop after this pattern formed is also seen in the RSI. This indicator is still within the mean level of 50, indicating that the momentum has been bearish for more than one month.
The only way that Shiba Inu price can defy the bearish odds in this bearish chart pattern is if it can rise above the rounding top’s highest price of $0.0000176. There could be a glimmer of hope for traders, considering that the AO histograms are turning green, which is a sign that bears may be losing strength, and a SHIB breakout rally may happen.
To conclude, the Shiba Inu price is falling due to many reasons, including falling network activity, a lack of interest towards meme coins, and weak demand from retail, whale, and futures traders. If this continues, a 40% crash to $0.00000634 will likely happen.
Frequently Asked Questions (FAQs)
Shiba Inu price is falling because of weak demand from traders. Declining network activity is also causing the dip.
The weak demand for SHIB follows a lack of interest in meme coins that have been underperforming compared to top coins like Bitcoin.
SHIB price could recover if whales start accumulating again and the Shibarium later two network records an uptick in activity.
muthoni
Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience decoding blockchain trends, price movements, and market dynamics. She holds a Bachelor’s Degree in Commerce (Finance) from Kenyatta University, blending a solid academic foundation with a sharp eye for technical analysis and a deep understanding of on-chain data. Her work delivers clear, data-driven insights that empower investors to navigate the fast-evolving digital asset space with confidence. When she’s not analyzing the markets, Mary enjoys reading and travelling.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Source: https://coingape.com/markets/why-shiba-inu-price-falling/