Shiba Inu (SHIB) dipped further on Monday, its lowest level in more than a year, as risk assets slipped and demand for meme coins dissipated.  SHIB, popular among retail investors in the last crypto bubble, is now failing as world economic conditions shift and investors flock towards safer alternatives.  With weakening market sentiment, investors are losing confidence in risky, speculative cryptos.

Investor Confidence Fades Amid Broader Market Shifts

The meme-based cryptocurrency has declined by around 40% of its value by 2025, lagging top altcoins as market momentum shifts and investor interest wanes. SHIB’s recent decline is a part of a larger downtrend in consumer-driven digital currencies aggravated by escalating geopolitical tensions as well as fears regarding tightening global liquidity.

According to Crytonizando, this sharp decline in the price follows mounting world tensions, ignited by tariffs issued by former President Trump on his so-called “Liberation Day.” China’s quick fire back with 34% counter-retaliatory tariffs stoked market fears, prompting an across-the-board selloff, which included major dumping of SHIB. SHIB’s open interest decreased by $454 million from its high of $542 million in mid-January, showing a sharp decline in bullish sentiment and an increasing hold by bearish traders.

At the time of writing, SHIB is trading at $0.000011. The market stats of SHIB on Coinbase suggest that Shiba Inu has seen volatile price action recently.  Its price dropped 0.13% over the past hour, but rose 5.14% over the past 24 hours.  Even with the recent rise, SHIB remains off 13.14% over the past week.  SHIB is trading at $0.000968 presently, with a 24-hour volume of $387.74 million.

Coinfomania’s analysis suggested that last week, investors expected SHIB to recover from the $0.000012 support and rise to $0.000014, but the rally did not occur. Instead, the price rested at $0.0000125, which is now a short-term resistance. Bullish momentum is still weak, indicating low market confidence.

Some reports suggest that the chances of SHIB reaching $0.0001 are decreasing, and it may even go as low as $0.000009 shortly. On the weekly chart, SHIB is trading in a downtrend channel, which generally indicates more selling and potentially a larger decline. Technical indicators also indicate weakness. The RSI has fallen to 35 and continues to make lower lows, indicating selling is on the rise. The MACD remains negative, indicating the price could continue to decline.

Some See Opportunity Amid the Decline

Although retail interest seems to be fading, there are some institutional and whale buyers making the most of the cheap prices. On-chain report suggests that crypto whales have been buying the dip. According to available data, big holders have purchased more SHIB than they have sold over the last four days. Reports suggest that around 874 billion SHIB tokens were accumulated by major wallets during the dip, suggesting that some market players might be set up for a longer-term reversal. 

IntoTheBlock’s Large Holder Netflow, which monitors wallets that contain at least 0.1% of SHIB’s total supply, indicates that this pattern indicates a rise in accumulation by significant investors, providing information about whale trading activity. It is interesting to note that the purchases of whales took place hours following Trump’s “Liberation Day” speech on April 2nd, in which he vowed greater tariffs. This means that some large investors find that the existing state of global tensions is a good time to put money into investments..