Why did the price of SHIB fall?
Shiba Inu (SHIB) dropped 3.18% in the last 24 hours, underperforming the overall crypto market, which fell by 1.62%. The main reasons for this decline are:
- BitMEX stopped offering SHIB derivatives – This reduced trading activity and liquidity
- Technical resistance held strong – SHIB’s price couldn’t break above a key level ($0.0000139) and momentum weakened
- Investors favor Bitcoin over altcoins – Bitcoin’s market share increased while altcoins like SHIB lost ground
Detailed Analysis
1. Reduced Trading Options on BitMEX (Negative Effect)
BitMEX, a major crypto exchange, removed SHIB perpetual contracts on September 11, 2025, due to low trading interest. This came after they also removed other low-volume tokens like ARB and BLUR.
What this means:
With fewer derivative products available, traders have less ability to use leverage or hedge their positions in SHIB. Although the regular trading volume for SHIB increased by 55% to $209 million in 24 hours, the total open interest in derivatives dropped 35% since July 2025 (BitMEX). Lower liquidity can lead to bigger price swings, making SHIB more vulnerable to sudden sell-offs.
2. Price Stuck Below Key Resistance (Negative Effect)
SHIB’s price failed to stay above the 200-day exponential moving average (EMA) at $0.0000139. It is currently trapped in a descending triangle pattern between $0.0000120 and $0.0000130.
What this means:
- The Relative Strength Index (RSI) is at 46.9, indicating weak momentum and no strong push for a price breakout
- The MACD histogram is negative (-0.0000000459), showing bearish pressure
- The next support level is at $0.0000115; if SHIB falls below this, it could retest its 2025 lows near $0.00000950
3. Shift in Market Sentiment Toward Bitcoin (Mixed Effect)
The Altcoin Season Index, which measures how well altcoins perform compared to Bitcoin, dropped 2.9% in 24 hours. Meanwhile, Bitcoin’s dominance in the market rose to 57.47%. SHIB’s price movement has become more closely linked to Bitcoin, with a 30-day correlation of 0.87.
What this means:
Investors are moving toward Bitcoin as a safer option amid economic uncertainties, such as expectations of Federal Reserve interest rate cuts and gold prices reaching $3,655 per ounce. Riskier assets like memecoins, including SHIB, are underperforming as traders become more cautious.
Conclusion
SHIB’s recent price drop is driven by reduced trading options on BitMEX, failure to break key technical resistance, and a general shift toward safer assets like Bitcoin. Although ongoing token burns (which have increased by 500% weekly) and upcoming upgrades to the Shibarium network provide long-term optimism, short-term price action depends on whether SHIB can hold above $0.0000115.
Key point to watch: Can SHIB maintain stability above $0.0000120 if Bitcoin climbs back to $116,000?
What could affect the price of SHIB?
Shiba Inu’s price is caught between hype from its meme status and growing real-world uses.
- Governance Elections – Leadership changes planned for August to September 2025 could change the project’s direction.
- Token Burns & Shibarium – A big increase in token burns (over 500% recently) and upgrades to the Shibarium blockchain aim to reduce the number of SHIB tokens available.
- Whale Activity – Mixed signals: $700,000 worth of SHIB tokens moved out recently, but the largest holders still control 124 billion SHIB.
Deep Dive
1. Governance Overhaul (Mixed Impact)
Overview: Shiba Inu is holding decentralized elections between August and September 2025 to choose a president and councils for its decentralized autonomous organization (DAO). This is an effort to move from being just a meme coin to having more structured leadership. However, disagreements about transparency and veto powers could cause divisions in the community.
What this means: If the elections go well, it could attract more serious investors by showing the project is maturing. But if things go wrong, it might lead to more selling. Past examples, like Doggy DAO, show that governance changes often come with price swings.
2. Token Burns & Ecosystem Upgrades (Bullish Impact)
Overview: The rate at which SHIB tokens are being permanently removed from circulation (called “burning”) jumped by 3401% in July 2025, with about 6.3 million tokens burned daily. Alongside this, Shibarium launched its Layer-3 “Alpha” upgrade in August 2025, aiming to speed up transactions and improve decentralized finance (DeFi) features.
What this means: Burning tokens helps reduce the total supply (currently around 589 trillion SHIB), which can support price increases. The Shibarium upgrade could also boost how useful SHIB is. However, burning alone hasn’t stopped the price from being 45% below its 2025 high.
3. Whale Movements & Derivatives (Bearish Risk)
Overview: Large holders, known as whales, control about 41% of all SHIB tokens. Recently, there were net outflows of $700,000 worth of SHIB in 24 hours. Additionally, BitMEX stopped offering SHIB derivatives trading in September 2025, and open interest in SHIB futures dropped 28% month-over-month.
What this means: If whales sell more tokens, it could push prices down, especially since there’s less trading volume. The removal of leveraged trading options (perpetual contracts) reduces speculative buying, which has historically helped meme coins like SHIB.
Conclusion
Shiba Inu’s future depends on balancing its meme popularity with real-world usefulness. Clear governance, ongoing token burns, and adoption of Shibarium are key factors that could drive the price up. On the other hand, whale selling and less trading activity in derivatives present risks. Keep an eye on the 200-day EMA ($0.0000139) as a key level to watch for a potential price breakout—will Shiba Inu’s upgrades help it move beyond just being a meme coin?
What are people saying about SHIB?
The Shiba Inu (SHIB) community is divided between hopeful excitement and cautious skepticism. Here’s what’s currently happening:
- Big investors, known as whales, are expecting a 30% price jump thanks to upcoming Shibarium upgrades 🚀
- Token burns have surged by 6,500% – but it’s unclear if this will impact the price 🔥
- Analysts warn of a potential "price trap" if SHIB falls below a key support level ⚠️
Deep Dive
1. Whale Activity Signals Buying Interest Bullish
According to @johnmorganFL, a crypto analyst with over a million followers, whales recently moved 3.62 trillion SHIB tokens (worth about $43.59 million) into cold storage—the largest transfer since May.
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What this means: This is generally positive for SHIB because moving tokens off exchanges reduces the amount available for selling, which can help support the price. When whales accumulate tokens, it often signals confidence and can lead to price increases, though the exact timing is uncertain.
2. Token Burns Spike but Price Impact is Limited Neutral
The official burn tracker @Shibburn reported that 6.48 billion SHIB tokens were burned in 24 hours—a massive 6,500% increase. However, the price still dropped by 4.2% during that time.
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What this means: Burning tokens reduces the total supply, which can increase scarcity over time. But in the short term, this hasn’t translated into price gains because demand hasn’t increased proportionally.
3. Technical Analysis Warns of Potential Price Drop Bearish
A technical analyst from the CoinMarketCap Community pointed out that SHIB could face a sharp decline if it falls below the $0.000012 support level, which aligns with the 50-day exponential moving average (EMA).
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What this means: If SHIB closes below this support, automated trading systems might trigger sell-offs, pushing the price down further. However, large whale buy orders could help prevent a steep drop.
Conclusion
The outlook for Shiba Inu is mixed. On one hand, token burns and whale activity, along with upcoming Shibarium upgrades like the auto-burn feature, are reasons for optimism. On the other hand, SHIB faces strong resistance around $0.000013 and weakening momentum signals. The key level to watch is $0.000012—holding above it could spark a rally, while falling below might confirm bearish trends.
What is the latest news about SHIB?
Shiba Inu is experiencing mixed signals: a big increase in token burns and rumors of an ETF are balanced by large holders selling off and worries about liquidity. Here’s the latest:
- ETF Rumors Grow (September 12, 2025) – Talk about a possible SHIB ETF is picking up, similar to what happened with Bitcoin and Ethereum.
- BitMEX Stops SHIB Derivatives Trading (September 5, 2025) – BitMEX halted SHIB derivatives due to low trading volume, which could lead to more price swings.
- Token Burn Rate Jumps 3,615% (August 2, 2025) – 6.3 million SHIB tokens were burned in one day as part of upgrades to the Shiba Inu ecosystem.
- New Voting System Introduced (August 18, 2025) – Shib Doggy DAO launched a new multi-choice voting system to improve governance.
Deep Dive
1. ETF Rumors Grow (September 12, 2025)
Overview:
There’s growing buzz about a potential SHIB exchange-traded fund (ETF), inspired by similar moves with Bitcoin and Ethereum. Although no official filings have been made, the speculation is based on SHIB’s $7.5 billion market value, its availability on global exchanges, and its popularity among everyday investors. If created, a SHIB ETF could attract big institutional investors, but it wouldn’t directly involve Shibarium, the Shiba Inu blockchain layer.
What this means:
In the short term, this is neutral for SHIB. The rumors show increasing interest from institutions but no concrete plans yet. If an ETF does launch, it could boost SHIB’s credibility and demand, though Shibarium’s utility token ($BONE) might see more direct benefits. (ShibariumNet)
2. BitMEX Stops SHIB Derivatives Trading (September 5, 2025)
Overview:
BitMEX has removed SHIBUSD perpetual contracts because fewer traders are using them. Since July, open interest (the total number of active contracts) dropped by 35%, showing less leverage trading. This removal reduces tools for hedging and could increase price volatility.
What this means:
This is a negative sign for SHIB in the near future. Lower liquidity in derivatives markets can lead to bigger price swings, especially if large holders (whales) continue selling. Traders are watching the $0.0000115 price level as important support. (Bitget)
3. Token Burn Rate Jumps 3,615% (August 2, 2025)
Overview:
The number of SHIB tokens burned daily jumped to 6.3 million, thanks to new features like automatic token burns and decentralized finance (DeFi) tools on Shibarium. The team credits this increase to progress in their “JUL-AI” initiative.
What this means:
This is positive for SHIB over the long term but has limited immediate effect. Burning tokens reduces the total supply (41% of the original supply has already been destroyed), which could help increase value if demand picks up. Currently, SHIB’s price remains steady around $0.0000127. (U.Today)
Conclusion
Shiba Inu is caught between positive developments like increased token burns and governance improvements, and challenges such as liquidity issues and large holders selling. The ETF rumors add excitement but lack concrete details. Key questions remain: Will Shibarium’s growing use offset exchange delistings? Can token burns gain enough momentum to reduce inflation? Keep an eye on the $0.000013 resistance level and whale wallet activity for signs of what’s next.
What is expected in the development of SHIB?
Shiba Inu is making progress with these key updates:
- DAO Elections (August 2025) – Shifting to community-led governance.
- Shib Alpha Layer (Q4 2025) – Launching a faster, more efficient blockchain layer.
- AI Integration (2026) – Introducing AI features and partnerships.
In-Depth Look
1. DAO Elections (August 2025)
What’s happening:
Shiba Inu’s DAO (Decentralized Autonomous Organization) is moving towards a more democratic system. Starting in August 2025, the community will vote for a “lead visionary” and councils to help guide decisions. This change, shared by developer Kaal Dhairya, aims to make decision-making more inclusive and flexible, moving beyond the current limited voting system (U.Today).
Why it matters:
This is a positive step for SHIB because giving the community more control can strengthen the project’s future and attract bigger investors. However, success depends on active participation and practical proposals.
2. Shib Alpha Layer (Q4 2025)
What’s happening:
The Shib Alpha Layer is a new blockchain upgrade set to launch in beta by the end of 2025. It’s a Layer-3 solution designed to connect different Shibarium-based apps into one fast, efficient network. Built with ElderLabs, it promises near-instant transactions, flexible payment options (using SHIB or stablecoins), and better privacy through advanced encryption (NewsBTC).
Why it matters:
This upgrade could make SHIB more useful by improving speed and ease of use, encouraging more apps to build on its platform. Risks include possible delays in security checks and competition from other Layer-3 technologies like Arbitrum Orbit.
3. AI Integration (2026)
What’s happening:
By late 2025, Shiba Inu plans to release a detailed paper about its AI strategy. Partnerships with companies like TokenPlayAI and NVIDIA aim to bring AI-powered features to the Shibarium ecosystem, including AI-driven gaming and smarter contracts (CoinMarketCap).
Why it matters:
This could set SHIB apart from other meme coins by adding innovative AI tools. However, the real impact depends on how well developers adopt these features and whether the community sees genuine value beyond hype.
Conclusion
Shiba Inu’s roadmap focuses on three main goals: empowering its community through DAO elections, boosting performance with the Alpha Layer, and exploring AI integration. These efforts aim to move SHIB beyond its meme coin image and increase its practical use. Still, the success of these plans will depend on timely execution and how the market responds. Will Shibarium’s user growth keep pace with its technical ambitions? Only time will tell.
What updates are there in the SHIB code base?
Shiba Inu’s latest software updates focus on improving governance, adding new DeFi tools, and making the network more stable.
- Governance Overhaul (August 18, 2025) – Introduced new voting options including quadratic voting and ERC-20 token-based governance.
- Shibarium Developer Upgrade (July 25, 2025) – Added AI-powered analytics and enhanced privacy features.
- Node & RPC Fix (June 6, 2025) – Fixed transaction errors on MetaMask Mobile.
Deep Dive
1. Governance Overhaul (August 18, 2025)
Overview: Shiba Inu’s Doggy DAO launched a new voting system that lets SHIB holders have more say in decisions without needing to lock up their tokens.
The update offers three ways to vote:
- ERC-20 voting: Vote directly based on the number of SHIB tokens in your wallet.
- Quadratic voting: Limits the power of big holders by making additional votes cost more.
- Staking-based voting: The traditional method where tokens are locked to vote.
Why it matters: This change is positive for SHIB because it makes decision-making fairer, reduces the influence of large holders (“whales”), and encourages more community members to participate. (Source)
2. Shibarium Developer Upgrade (July 25, 2025)
Overview: Shibarium’s platform was upgraded with AI tools and stronger privacy protections.
Key features include:
- Concentrated liquidity pools: These help DeFi users earn better yields by optimizing how funds are managed.
- ShibTorch burns: Tokens are burned in real-time based on network activity, helping control supply.
- Modular rollups: Technology that improves scalability, allowing decentralized apps to run more efficiently.
Why it matters: This update is neutral in the short term, as its impact depends on how widely these features are adopted. However, it’s a positive step for making the Shiba Inu ecosystem more useful and efficient over time. (Source)
3. Node & RPC Fix (June 6, 2025)
Overview: A critical fix addressed errors that were causing problems for MetaMask Mobile users trying to make transactions on Shibarium.
The update:
- Made mobile transactions smoother and more reliable.
- Restored important network data for validators.
Why it matters: This is good news for SHIB because it improves the user experience, making it easier for everyday investors to use the network and boosting overall reliability. (Source)
Conclusion
Shiba Inu’s recent updates highlight a focus on decentralizing control, adding useful DeFi and AI features, and fixing technical issues to improve stability. While these changes are mostly positive, the real test will be how quickly users and developers adopt Shibarium’s new tools. What factors could help SHIB evolve from a meme coin into a key player in DeFi?