Shiba Inu Coin Drops 17% Since May High Amid Bearish Trend

Shiba Inu Coin, the first major dog-themed memecoin launched on Ethereum, has been experiencing a bearish trend since early May. The coin's price has dropped 17% from its May high, currently trading near $0.00001460. This decline comes after a brief rally in early May, which was fueled by various catalysts, including a tweet from marketing lead Lucie predicting a 1,000% increase in price and increased excitement surrounding Shibarium, a Layer-2 blockchain. During this period, Shibarium’s total value locked (TVL) increased by over $1.5 million to $3.79 million, indicating a potential for broader adoption of Shiba Inu.

However, the price rally did not sustain its momentum. On May 17, despite a significant 106,040% spike in the 24-hour burn rate, SHIB fell by 5.3%, confirming a bearish setup. The coin's price remains below the 50, 100, and 200-day Exponential Moving Averages (EMAs), further solidifying the bearish trend. The Relative Strength Index (RSI) has slipped to 52.4, down from 59.7 during the recent peak, signaling fading bullish strength. The Chaikin Money Flow (CMF) has turned negative at -0.06, indicating that capital inflows have dried up and accumulation interest is lacking.

On-chain data further confirms the bearish momentum. Over the last 30 days, large holder netflow dropped by 311%, showing that whales reduced their exposure and likely moved tokens to exchanges during the early May rally. Whale outflows surged over 1000%, signaling aggressive exits as SHIB briefly rallied. This indicates that the burn hype was used as exit liquidity rather than a reason to accumulate. Additionally, only 17% of SHIB holders are currently making a profit, while over 80% are holding at a loss. This suggests that if the price rises, many traders might sell quickly just to recover their money, which could stop the rally from continuing.

Active addresses have dropped from 238,000 in December to 75,000 now, showing retail disinterest. SHIB now hovers near $0.00001375, the 23.6% Fibonacci retracement. If this level breaks, downside risk extends toward $0.00001200, with the critical April bottom at $0.00001029 acting as the final major support. Until the price breaks above the $0.00001450–$0.00001600 zone with volume confirmation, the technical outlook remains bearish. From a trader’s standpoint, the bias leans bearish until key resistance levels flip to support, but keep an eye on volume and whale flows for signs of accumulation or reversal. A decisive trend shift may not occur before early June, unless fueled by strong catalysts.