Shiba Inu (SHIB)one of the most popular meme coins in the cryptocurrency world, recently faced a huge drop in value. After reaching its maximum range, SHIB price fell by 40%, leaving investors surprised and worried. What caused this sudden collapse? Is this just a temporary drop or could it be a sign of deeper problems for SHIB? on this Shiba Inu Price Prediction In this article, we will explore what led to this sharp drop and what it means for the future of this beloved meme coin.
How has the price of Shiba Inu (SHIB) moved recently?
SHIB/USD Daily Chart – TradingView
The current price of Shiba Inu (SHIB) is $0.00002275, with a 24-hour trading volume of $3.83 billion. Its market capitalization is $13.4 billion, giving it a market dominance of 0.39%. In the last 24 hours, SHIB price has increased by 1.82%.
Shiba Inu reached its all-time high of $0.00008819 on October 28, 2021, while its all-time low was recorded on November 28, 2020, at $0.0₁₀5637. Since reaching its peak, the lowest price SHIB has fallen to was $0.0₅5821 (cycle low), while its highest price since that point was $0.00004501 (cycle high). Currently, market sentiment around SHIB is bearish with the Fear & Greed index indicating a level of 73, reflecting “greed”.
The circulating supply of Shiba Inu is 589.26 billion SHIB out of a maximum supply of 589.74 billion. The annual supply inflation rate is -0.01%, which means that 62.47 billion SHIB were withdrawn from circulation last year.
Shiba Inu Price Prediction: Will SHIB Price Fall to 0?
Shiba Inu (SHIB) has seen a notable 40% drop since hitting its December highs, landing at a critical long-term horizontal support level. Historically, these support zones often act as a psychological barrier for traders, where increased buying activity can stabilize prices or trigger a rebound. However, the question remains: will SHIB price recover or could it fall to zero?
Large transaction volumes and whale activity:
In the last 24 hours, SHIB has seen a 41.39% increase in large trading volumes, representing $76.48 million in capital inflows. Whale activity on this scale typically indicates strategic purchases, often at perceived discount prices. These moves suggest confidence among major investors in the future of the token.
- Assuming that the $76.48 million inflow caused a 1.82% price increase, each $1 million inflow roughly correlates with a 0.0238% price increase ($76.48 million ÷ 1.82%).
- If whale activity maintains similar inflows, a continuation of this trend over the next week could contribute to a further increase. 0.166% daily price increase (assuming an inflow of $10 million/day), which supports price stabilization.
Shiba Inu’s plans to expand its social and DeFi platforms indicate a focus on utility. Since DeFi tokens typically rally when platforms innovate or expand, this could attract both retail and institutional investors. For example:
- A successful platform expansion could raise SHIB’s total value locked (TVL), which could lead to a price recovery of 10% to 15% within months.
- The growing adoption of its DeFi services could boost demand for SHIB, countering selling pressure and reducing the likelihood of a price drop.
Support Zone Resilience:
Technical analysis shows that SHIB’s current price aligns with a key support zone that has historically caused bounces. If the price stays at this level, the probability of a crash is reduced to zero. However, a break of this support could lead to further declines towards $0.0000005000.
Short-term movements:
If whale activity continues and overall crypto market sentiment remains stable, SHIB could consolidate between $0.000005000 and $0.000008000 over the next month. This range reflects resistance levels formed during previous price bounces.
Medium-term scenario (2024):
With anticipated ecosystem updates, SHIB price could see renewed interest. If the upgrades drive DeFi adoption and improve the token’s utility, SHIB could regain the $0.00003 range, which represents a 32% price increase from their current levels.
Long-term scenario (2025):
Analysts predicting a surge in the Shiba Inu ecosystem by early 2025 believe the token could challenge its all-time high ($0.00008819). Assuming a conservative growth rate of 15% quarterlySHIB price could reach around $0.000045 in early 2025, just over 50% of its previous ATH.
Could SHIB fall to zero?
While speculative assets like SHIB carry inherent risks, a drop to zero seems highly unlikely in the near term:
- Support for whales: The inflows of 76.48 million dollars demonstrate the confidence of large investors.
- Ecosystem expansion: Plans for the growth of DeFi and social platforms provide utility and encourage adoption.
- Market sentiment: As long as SHIB maintains trading volumes and active development, its value is likely to remain above critical support zones.
Therefore, SHIB’s near-term performance depends on sustained whale activity and ecosystem upgrades. While there are risks, the combination of strong community support, developer activity and a broader market recovery could push the price of SHIB higher in the medium to long term, making a drop to zero unlikely.
