SHIB Faces Market Turbulence Despite Groundbreaking Layer 2 Innovation

Shiba Inu (SHIB) is currently testing key support levels after a significant 12% weekly decline, despite announcing a major technical breakthrough with its new privacy-focused Shib Alpha Layer. Built on Fully Homomorphic Encryption in partnership with ZAMA, this LAYER 2 solution represents a leap forward for confidential smart contracts, opening doors for potential applications in healthcare and finance. However, market dynamics tell a contrasting story, with 211 million SHIB liquidated recently. This divergence between technological progress and price action creates an intriguing tension for SHIB investors. The meme token's ecosystem expansion continues amidst this volatility, suggesting long-term potential despite short-term challenges. As of June 2025, SHIB's price trajectory remains uncertain, caught between bearish market sentiment and bullish fundamental developments in its underlying technology.

Shiba Inu Price Tests Support After Major Sell-Off Despite Layer 2 Breakthrough

Shiba Inu's ecosystem expansion clashes with market turbulence as SHIB faces a 12% weekly decline. The meme token's new privacy-focused Shib Alpha Layer—built on Fully Homomorphic Encryption in partnership with ZAMA—marks a technical leap for confidential smart contracts. Healthcare and finance applications now loom as plausible use cases.

Market dynamics tell a different story. A 211 million SHIB liquidation event triggered a descent to $0.00001171, erasing $6.9 billion in market capitalization. The 4-hour chart shows bulls defending $0.00001152, though resistance persists at the Bollinger Band midpoint of $0.00001194. With RSI at 42.3 and climbing, traders watch for either capitulation or accumulation at these levels.

Shiba Inu Faces Bearish Pressure as $1.8M in Long Positions Liquidated

Shiba Inu's price tumbled 10% to $0.00001164 this week, marking its lowest level in two months. The decline triggered a wave of liquidations, with over $1.8 million in bullish positions wiped out since June 12—nearly four times the value of short liquidations during the same period.

Futures markets reflect growing skepticism, with the long-short ratio dropping to 0.9298. Open interest fell 2.14% to $145.33 million, signaling dwindling trader participation. Technical analysts note critical support at $0.00001167—a breach could accelerate declines toward $0.00001061.

Despite the bearish momentum, some indicators suggest potential for reversal if SHIB maintains footing above $0.00001100. The meme coin's volatility continues to test investor resolve as market sentiment remains fragile.

Shiba Inu Whale Activity Surges Amid Market Turbulence

Shiba Inu's ecosystem shows divergent signals as whale inflows spike 6,306% following Shibarium upgrades. The network's introduction of multi-gas token support coincides with intensified token burns—1.19 billion SHIB removed from circulation last week alone.

Price action reveals tension between technical indicators and market sentiment. SHIB hovers NEAR $0.00001160 after a 15% weekly decline, testing critical support at $0.0000102. The Relative Strength Index at 35.7 suggests oversold conditions, while futures open interest hitting $134 million—a two-month low—hints at potential accumulation.

Gate.io dominates derivatives activity with $147.27 million in futures volume, signaling sophisticated traders are repositioning. This comes as broader crypto markets contend with geopolitical headwinds and shifting risk appetites.

Shiba Inu Holders Shift to Long-Term Strategy Amid Market Stability

Shiba Inu (SHIB) is demonstrating structural maturity as investors increasingly commit to long-term holdings, defying typical memecoin volatility. On-chain data reveals a 106% surge in average holding periods, signaling a departure from speculative trading. SHIB's price stability around $0.00001160 aligns with a 46% weekly gain, suggesting growing investor confidence.

The reduction in active circulation due to long-term holdings is dampening price swings—a rare trait for assets in this category. This behavioral shift mirrors early-stage maturation patterns seen in more established cryptocurrencies, potentially setting the stage for sustained upward momentum.