Shiba Inu Under Pressure as Investor Confidence Wanes

Shiba Inu (SHIB) continued to face selling pressure on Thursday as the broader crypto market downturn deepened. The meme coin slipped to $0.00001275—its lowest point since May 9—marking a 28% decline from its peak last month.

The sharp drop reflects growing investor fatigue. Many SHIB holders are cutting losses after weeks of weak performance. On-chain data reinforces the bearish mood: the network’s Net Realized Profit/Loss (NPL) has remained in negative territory for months, suggesting most tokens changing hands are being sold at a loss. This is a strong indicator that sentiment around SHIB remains bleak.

Whale activity further supports this trend. Since January, major holders have reduced their SHIB positions by 30 trillion tokens, falling from 748 trillion to just over 718 trillion. Meanwhile, the supply of SHIB on centralized exchanges is climbing, typically a signal that more holders are preparing to sell.

Trading activity also paints a gloomy picture. In the past 24 hours, Shiba Inu recorded just $141.8 million in spot trading volume—substantially lower than other meme coins. For comparison, Dogecoin posted $764 million in volume, while PEPE led the pack with a staggering $1.08 billion.

After a brief four-day rally that ended on June 3, SHIB has struggled to regain momentum. At press time, the token was up 0.24% in the last 24 hours, trading at $0.00001293—still below this week’s high of $0.00001345.

Adding to the pressure, U.S. macroeconomic data continues to disappoint. On Thursday, the Labor Department reported 247,000 new jobless claims, above expectations and the highest weekly figure in several months. Combined with other negative economic indicators, the shaky outlook has left risk assets like crypto on the defensive.

As it stands, SHIB is stuck between bearish sentiment and low demand, with any short-term rebound likely dependent on broader market stabilization.

Image Credit: Pixabay