Shiba Inu price pressure despite payment card launch

Shiba Inu under pressure despite new payment card and rewards

Shiba Inu (SHIB) recently debuted a branded payment card and an associated rewards campaign intended to boost on‑chain utility and everyday spending. Despite the high‑profile rollout and promotional token incentives, SHIB’s price has moved lower, underscoring that product launches alone may struggle to offset broader market dynamics in 2025.

This article examines the card launch, on‑chain flows, prevailing macro and market sentiment in 2025, technical indicators, and what traders and long‑term holders should watch next.

What the payment card launch means for SHIB

The new SHIB‑themed payment card aims to make the token more spendable by enabling crypto payments for everyday purchases. Early adopters are typically offered rewards and incentives to drive sign‑ups and initial usage, a common strategy for building transactional demand.

• Card utility: Enables spending crypto in retail and online channels where card rails are accepted.
• Incentives: Reward pools and sign‑up bonuses are used to accelerate adoption and publicity.
• User experience: Zero or low fees and simple onboarding help lower the barrier for mainstream users.

From a utility perspective, a payments solution is a positive step for any token that aims to broaden real‑world use cases. However, adoption takes time and the short‑term price impact is often muted if market conditions are unfavorable.

2025 market context: why utility doesn’t always equal instant gains

Several structural and cyclical factors in 2025 have shaped investor appetite for risk assets, including memecoins like SHIB.

• Capital rotation to Bitcoin and regulated products: 2025 has continued to see flows into core Bitcoin products and regulated institutional offerings, increasing Bitcoin dominance and compressing altcoin liquidity.
• Macro uncertainty: Interest rate expectations, persistent inflationary data in some jurisdictions, and geopolitical risks have periodically raised risk aversion among crypto investors.
• Liquidity and market depth: Lower liquidity for many altcoins makes prices more sensitive to large trades. This amplifies volatility when whales move funds to exchanges.
• Regulatory developments: Progress toward clearer regulation in several markets has favored established blue‑chip crypto products, while speculative assets can be deprioritized by conservative investors.

These conditions mean that even useful product launches can take months to materially affect market valuation, especially for tokens that remain perceived as high‑beta or speculative.

On‑chain dynamics: whale flows and exchange inflows

One immediate pressure point for SHIB in the wake of the card release has been large on‑chain movements. Significant transfers of SHIB to exchanges can signal intent to sell and create supply pressure in a market with limited bid depth.

Key observations:

• Large holders moving tens of billions of tokens to exchange addresses tend to precede volatility. In low‑liquidity episodes, a single large sell can push prices substantially lower.
• Exchange inflows can be interpreted as liquidation intent by algorithmic and discretionary traders, prompting market makers to widen spreads and reduce immediate bid support.
• Even reward campaigns that distribute tokens to many wallets can temporarily increase on‑chain transfer volume, which may be misread as bearish by short‑term traders.

For SHIB specifically, a combination of concentrated holdings and sizable exchange inflows has been a notable headwind during recent trading sessions.

Sentiment and 2025 risk aversion

Market psychology plays an outsized role in memecoin price action. When sentiment turns risk‑off, capital tends to concentrate in safer, more liquid assets. Indicators of sentiment in 2025 have pointed to periods of acute risk aversion:

• Fear & Greed metrics at low readings indicate investors are favoring capital preservation over speculative buying.
• Rising Bitcoin dominance suggests rotation out of altcoins and into perceived safer crypto exposures.
• News flow around macro or regulatory uncertainty can accelerate this rotation, regardless of on‑chain utility announcements.

In this environment, promotional launches and community incentives may generate local excitement but are often insufficient to drive sustained price rallies without broader market tailwinds.

Technical analysis: momentum and key levels

Technical indicators provide a snapshot of short‑ and medium‑term trader positioning. For SHIB, a number of technical factors point to continued caution.

Moving averages and trend

SHIB remains below several short‑to‑mid term moving averages, which are commonly watched by traders for trend confirmation. Trading below the 7‑day and 30‑day moving averages suggests near‑term sellers are in control.

Relative Strength Index (RSI) and momentum

The RSI has been hovering in the lower‑mid range rather than showing an oversold extreme. This signals that downside momentum still has room to run before a clear mean‑reversion trade becomes obvious.

Volume behavior

Volume has contracted during recent declines, which can be interpreted two ways:

• Lower volume on declines can indicate a lack of conviction from buyers, increasing the risk of further downside if sellers return with size.
• Alternatively, muted volume may precede a sharp move once liquidity providers widen spreads and then adjust to larger orders.

Support and resistance to watch

• Immediate support: recent intraday lows and historically tested price areas; a break below these zones could invite deeper selling.
• Critical support: the multi‑month lows that have previously marked capitulation phases — these levels are psychologically important and often attract buy programs if reached.
• Resistance: short‑term moving averages and prior trading ranges act as hurdles for any recovery attempt.

Trading and risk management guidance

Market participants should align positions with their time horizon, risk tolerance, and the macro backdrop. Recommended considerations for 2025:

• Use position sizing: Given SHIB’s high volatility, keep allocations modest relative to overall portfolio size.
• Set clear entry and exit points: Define stop‑loss levels below critical support to limit downside exposure.
• Watch on‑chain flows: Large transfers to exchanges can provide early warning signs of potential selling pressure.
• Consider scaling in: For long‑term holders who believe in the token’s utility story, phased buys at lower price levels reduce timing risk.
• Monitor macro cues: Shifts in risk sentiment, Bitcoin dominance, and liquidity conditions materially affect memecoin performance.

Long‑term outlook: can utility shift the narrative?

Payment cards and merchant integrations are meaningful milestones for a token’s ecosystem and can establish pathways to increased utility. Over the medium to long term, consistent transactional use, merchant acceptance, and frictionless UX are the drivers that can convert speculative holders into repeat users.

However, the transition from promotion to genuine, sustained demand typically requires:

• Retention: users must continue to use the card beyond the reward period.
• Liquidity: wider liquidity across venues to absorb supply without sharp price moves.
• Regulatory clarity: stable frameworks help institutional and merchant adoption.
• Technical robustness: low fees, fast settlement, and easy onboarding reduce churn.

In 2025, the market reward for such progress is often contingent on broader macro and capital flows. A product release can be a necessary but insufficient condition for a durable price recovery.

Key takeaways

• Branded payment card and reward programs increase visibility and may help long‑term adoption, but they are not an immediate panacea for price weakness.
• Large token movements to exchanges and thin liquidity have amplified downside risk in recent sessions.
• 2025 market dynamics — including capital rotation to Bitcoin, macro uncertainty, and regulatory focus — have weighed on speculative altcoins.
• Technicals show limited upward momentum, and traders should watch critical support levels and moving averages for direction.
• Risk management, position sizing, and awareness of on‑chain flows are essential in this environment.

Conclusion

The SHIB payment card rollout and reward initiatives represent constructive steps for building real‑world utility. Yet in 2025, those positives must contend with larger forces: whale flows, low liquidity, risk aversion and structural capital rotation within crypto markets. Short‑term price action is likely to remain sensitive to exchange inflows and sentiment indicators, while any sustainable upside will depend on genuine, ongoing adoption and more favorable macro conditions.

For traders and investors, blending technical signals with on‑chain monitoring and macro awareness is the most prudent way to navigate SHIB’s path forward.

Disclaimer: This post is a compilation of publicly available information.
MEXC does not verify or guarantee the accuracy of third-party content.
Readers should conduct their own research before making any investment or participation decisions.