Shiba Inu Faces Increased Volatility: What You Need to Know
Shiba Inu (SHIB), the popular meme cryptocurrency known for its dog-themed branding, has recently experienced a modest decline of 0.95%, bringing its price to $0.00000837 during U.S. market hours on Monday. While this decrease might seem insignificant, it signals underperformance compared to the broader crypto market. Bitcoin, for instance, has maintained a sideways trend around $90,000.
Whales Show Strong Interest in SHIB
Despite the recent negative price movement, on-chain data reveals significant SHIB accumulation by crypto whales—large-scale investors controlling a considerable portion of the token’s supply. This activity reflects their confidence in the potential for an upswing. However, the heavy concentration of tokens among such entities presents risks, including the potential for market centralization.
Between December 2025 and mid-January 2026, centralized exchanges saw an outflow of approximately 80 trillion SHIB tokens, leading to a 22% reduction in trading venue supply. This outflow brought the exchange balance from 370.3 trillion tokens to 290.3 trillion. Analysts have also noted heightened activity from new cryptocurrency wallets that withdrew 82 trillion SHIB—particularly from Coinbase—over the past 60 days when prices hovered around $0.0000085.
Concentration Risks and Market Impacts
Currently, the top 100 wallets hold over 57% of SHIB’s total supply. This increasing concentration reflects growing market centralization, which could lead to significant volatility. A coordinated sell-off by these high-net-worth investors could trigger panic and cause a sharp price drop, making retail investors particularly vulnerable.
Meme Coin Performance and Future Trends
In the last week, Shiba Inu’s price dipped from $0.00001008 to $0.0000089—representing a 17% decline. Its market cap also decreased from $4.96 billion, reflecting broader bearish market sentiment. A detailed analysis of SHIB’s daily trading chart shows price movement contained within a bearish falling wedge pattern. Historically, resistance at this pattern’s trendline has accelerated price declines, driving SHIB to lower support levels.
Technical indicators suggest a continued bearish trend, with SHIB’s price positioned below its 100- and 200-day EMA slopes. If selling continues, market analysts project a potential 24% drop to $0.00000766. Alternatively, a breakout above the wedge’s resistance trendline could signal improving market optimism and potential price recovery.
A Word on Risks and Opportunities
As Shiba Inu faces increased centralization among whale investors, the risk of large-scale sell-offs should not be underestimated. Retail investors must remain cautious when trading in assets with significant whale dominance. For those interested in following SHIB or other speculative assets, products like Ledger Nano X can help securely store crypto investments offline, safeguarding holdings from unexpected market movements or exchange risks.
Final Thoughts
Shiba Inu’s future remains uncertain as market centralization and bearish trends shape the token’s performance. Whether you’re a long-term holder or a prospective investor, it’s essential to stay informed about on-chain data, technical analysis, and whale activity that influences price movements. With volatility on the horizon, monitoring SHIB’s price action and broader market trends will be crucial in navigating this meme cryptocurrency’s next chapter.
