SHIB Plummets 103.63% Amid Liquidity Concerns and Regulatory Pressures

On May 30, 2025, Shibaka (SHIB) experienced a dramatic decline, dropping 103.63% within 24 hours to hit $0.00001351. Over seven days, the token fell 829.9%, while monthly data showed a 60.2% rise. Year-to-date performance, however, deteriorated sharply, with a 3,636.36% decline. Analysts attribute the volatility to a combination of liquidity pressures, regulatory scrutiny, and shifting investor sentiment.

Market Turbulence and Liquidity Challenges

SHIB’s sharp 24-hour decline followed a broader sell-off in altcoins, driven by concerns over reduced trading volumes and limited market depth. Trading platforms reported increased order cancellations for SHIB, exacerbating price instability. The token’s liquidity pool saw a 45% withdrawal in the preceding week, compounding fears of a liquidity crunch. This contrasts with its 60.2% monthly gain, which had been fueled by speculative buying linked to social media campaigns.

Regulatory and Operational Pressures

Regulatory developments in multiple jurisdictions contributed to the downturn. Authorities in several regions intensified scrutiny of decentralized finance (DeFi) projects, including those associated with SHIB. These actions heightened uncertainty over the token’s long-term compliance risks. Additionally, SHIB’s parent company, Shibaka Labs, announced the cancellation of a planned partnership with a major DeFi platform due to unresolved legal disputes.

Internal governance issues further strained confidence. A proposal to repurchase 10% of circulating SHIB tokens for burn was delayed after internal audits uncovered discrepancies in token distribution records. This delay, combined with ongoing debates over the token’s utility, eroded investor optimism.

Analyst Reactions and Technical Outlook

Analysts noted the disconnect between SHIB’s short-term volatility and its fundamental metrics. “The token’s price action reflects speculative overhang rather than tangible adoption,” said one market researcher. Technical indicators point to potential oversold conditions, with the Relative Strength Index (RSI) dipping below 30—a level often signaling a rebound. However, resistance at $0.000015 remains a critical hurdle.

Longer-term projections remain cautious. Analysts project a 12-month price range of $0.000010 to $0.000020, contingent on regulatory clarity and renewed institutional interest. “Without structural reforms or sustained demand, recovery could be slow,” warned a second analyst.

Current Market Dynamics

Despite the recent declines, SHIB’s daily trading volume remains elevated at $23 million, though this represents a 68% drop from earlier this year. Institutional investors have largely reduced exposure, with retail traders now comprising 89% of active participants. Social media sentiment, a key driver of SHIB’s past rallies, has turned neutral, with bullish posts falling to 35% of total mentions.

The token’s market cap now stands at $176 million, down from a peak of $2.5 billion in 2023. This contraction underscores the challenges facing meme-based cryptocurrencies in an environment of heightened regulatory oversight and shifting market priorities.

Conclusion: Volatility and Uncertainty Persist

SHIB’s price swings highlight the precarious balance between speculative momentum and fundamental challenges. While short-term rebounds are possible, sustainable growth hinges on addressing liquidity risks, regulatory compliance, and operational transparency. Until then, the token’s trajectory remains tied to external market forces and investor sentiment.