Shiba Inu Whale Inflows Plunge 83% as Bitcoin Dominance Rises

Shiba Inu (SHIB) has experienced a significant decline in whale inflows, dropping by 83% in the past 30 days. This decrease, from 8 trillion to below 2 trillion tokens, indicates a substantial reduction in large holder activity. Both inflows and outflows have fallen by more than 80% since early May, signaling a contraction in liquidity and lower trading participation from whales. As a result, retail participants now handle most of SHIB’s current market volume.

Technically, SHIB continues to trade below its key resistance level of $0.00001596, with the 50-period Exponential Moving Average (EMA) at $0.00001466 acting as dynamic resistance. The token has been locked in a tight range, struggling to establish a higher low or close above key levels. The 4-hour chart shows a clear consolidation pattern, with multiple failed attempts to break through resistance since late April. Trading volume remains low, with a declining trend over the past few sessions, confirming the lack of momentum. This weakening activity coincides with the broader drop in large holder participation and reduced whale inflows.

The decline in SHIB whale inflows coincides with an increase in Bitcoin’s dominance, which has reached 52%. As more capital flows into Bitcoin, altcoins like SHIB experience reduced visibility and market activity. This shift in market focus has resulted in SHIB struggling to generate strong price action or volume. The broader altcoin market has also felt the impact, with Ethereum, Binance Coin, and Solana losing market share as Bitcoin regains control of market capital. However, SHIB has seen a sharper decline due to limited ecosystem updates and low development activity.

Despite the surge in SHIB’s burn rate, which spiked by 12,715% on May 26, removing 53.9 million tokens, the market response remained muted. The trading volume stayed low, and the price showed little movement across major exchanges. This lack of immediate market reaction suggests that whale inflows and broader participation remain limited. The burn event followed a similar case on May 24, when 37.9 million SHIB were destroyed, marking a 22,662% rise in burn rate. Both events highlight efforts to shrink SHIB’s supply, but the token’s market activity has not yet shown signs of revival in response.