Shiba Inu Faces Endless Slump and Declining Trading Volume, Risks Dropping Out of Top 30 by Market Cap

▲ Shiba Inu (SHIB)

Shiba Inu (SHIB) is facing growing investor anxiety as continued price declines and shrinking trading volume push the token to the brink of falling out of the top 30 cryptocurrencies by global market capitalization.

According to crypto media outlet The Crypto Basic on February 27 (local time), Shiba Inu has struggled over the past month, plunging 24% in value. Its market capitalization has fallen to around $8 billion, barely maintaining its position within the global top 30. Market experts warn that unless Shiba Inu finds short-term rebound momentum, it is highly likely to be overtaken by emerging crypto projects and drop further in the rankings.

From a technical analysis perspective, Shiba Inu is trading below key moving averages, facing strong downward pressure. In particular, the 26-day exponential moving average is acting as a strong resistance level, repeatedly thwarting recovery attempts. Journalist Maxwell Mutuma analyzed that Shiba Inu’s price action has entered a volatility squeeze phase, where movement is compressed within a narrow range, signaling that a strong directional move may occur soon.

On-chain data also supports concerns about Shiba Inu’s weakening position. Data from crypto analytics platform Santiment shows a noticeable decline in active addresses and new capital inflows on the Shiba Inu network. As retail traders lose interest, trading volume has failed to show consistent day-over-day support, indicating that market participants have shifted to a wait-and-see stance until a clear catalyst emerges.

To defend its ranking, Shiba Inu must urgently hold its current support levels. If additional sell pressure breaks through major supports, psychological thresholds could collapse, risking a rapid erosion of market capitalization. With overall risk appetite in the broader crypto market yet to recover, Shiba Inu is in urgent need of strong positive catalysts, such as independent ecosystem expansion or significant token burn events.

Shiba Inu is now at a critical crossroads in its effort to maintain a top-30 market capitalization ranking. Changes in market liquidity and the inflow of new capital are expected to be key variables in determining future ranking shifts. Market attention is focused on whether technical improvements within the Shiba Inu ecosystem and continued community support can halt the downtrend and drive a rebound.

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