Shiba Inu Drops 13.23% Weekly as Whale Activity and Distribution Concerns Rise

Shiba Inu (SHIB) is experiencing a period of volatility marked by surging on-chain activity and mixed technical signals. In recent weeks, large SHIB address outflows have surged by 12,887% over 30 days, a figure that analysts suggest is largely driven by a small base effect rather than widespread panic or selling pressure. A more realistic view of the trend shows a 58% rise in the past seven days and a 34% increase over 90 days, indicating a steady but not alarming shift in token movement [3].

Price action further reflects uncertainty. SHIB has struggled to break through the $0.0000125 resistance level, with increasing selling momentum observed alongside declining prices. On August 3, the token formed an inverted hammer pattern near $0.000012, a potential bullish reversal signal. However, the price remains fragile, with a 6% one-day drop pushing it to its lowest level since mid-July. Analysts caution that as long as the price stays above $0.00001108, there is a possibility for a rebound, but a breakdown would likely lead to further declines [3].

On-chain data reveals a mixed outlook. SHIB’s holder retention rate is at 97.25%, suggesting strong long-term conviction among investors despite a 45% year-to-date price decline. However, whale activity has increased, with 84.9 trillion SHIB tokens present on exchanges as of July 28. This reflects a shift from accumulation to distribution, and a 358% drop in net flow from large wallets over 30 days underlines this trend. A $70 million whale transfer from Coinbase Institutional to an unknown wallet adds to concerns about strategic positioning amid bearish market sentiment [3].

Meanwhile, token burn rates have spiked dramatically, with a 16,700% surge on July 29 in which 602 million SHIB tokens were burned in a single transaction. While such efforts aim to reduce supply, the muted price response highlights the challenge of creating demand-based value. The Chaikin Money Flow indicator recently crossed above zero, suggesting renewed short-term buying pressure, yet the overall market remains cautious [3].

In terms of broader market dynamics, SHIB has dropped out of the top 20 largest cryptocurrencies by market capitalization by July 30, signaling a decline in its standing amid stiff competition. Some investors have shifted focus to alternative projects like Maxi Doge, which is currently in a presale phase and perceived as offering higher potential gains [2]. A further 13.23% weekly drop in SHIB’s price has brought its value to $0.000012, with its market cap shrinking to $7.17 billion following a 9% rally in July. Internal divisions within the Shiba Inu ecosystem have been cited as a contributing factor to this decline [6].

Despite the bearish pressures, SHIB’s ecosystem continues to develop. The token has shown mild price spikes in recent weeks, and the Shiba Inu platform, Shibarium, recently reached one billion transactions, demonstrating growth in adoption and addressing key blockchain challenges like scalability and high fees [7].

The coming days will be critical for SHIB’s trajectory. A sustained increase in accumulation and a reduction in exchange outflows could signal a shift in investor sentiment. Conversely, a breakdown below $0.00001108 would likely intensify bearish momentum. Traders are advised to closely monitor key price levels and on-chain activity as SHIB’s future remains uncertain but not without potential.

Source:

[1] TheCryptobasic - [https://thecryptobasic.com/2025/08/05/shiba-inu-no-longer-in-top-20-heres-what-could-have-caused-the-drop/](https://thecryptobasic.com/2025/08/05/shiba-inu-no-longer-in-top-20-heres-what-could-have-caused-the-drop/)

[2] ICObench - [https://icobench.com/news/shiba-inu-price-prediction-shib-drops-to-crucial-support-investors-move-to-maxi-doge/](https://icobench.com/news/shiba-inu-price-prediction-shib-drops-to-crucial-support-investors-move-to-maxi-doge/)

[3] AInvest - [https://www.ainvest.com/news/shiba-inu-shib-critical-juncture-inverted-hammer-signal-bullish-reversal-market-uncertainty-2508/](https://www.ainvest.com/news/shiba-inu-shib-critical-juncture-inverted-hammer-signal-bullish-reversal-market-uncertainty-2508/)

[6] AInvest - [https://www.ainvest.com/news/shiba-inu-falls-13-23-weekly-internal-divisions-hinder-growth-2508/](https://www.ainvest.com/news/shiba-inu-falls-13-23-weekly-internal-divisions-hinder-growth-2508/)

[7] OKX - [https://tr.okx.com/en/learn/shiba-inu-shibarium-ecosystem-future](https://tr.okx.com/en/learn/shiba-inu-shibarium-ecosystem-future)