Shiba Inu, one of the most popular meme coins in the cryptocurrency world, has recently faced a significant drop in value. After reaching a peak, the price of SHIB fell by 40%, surprising and worrying investors. What caused this sudden collapse? Is it just a temporary decline or could it be a sign of deeper troubles for SHIB? In this Shiba Inu price prediction article, we will explore the reasons behind this sharp decline and what it means for the future of this beloved meme coin.
How Has the Price of Shiba Inu Changed Recently?
The current price of Shiba Inu (SHIB) is $0.00002275, with a 24-hour trading volume of $3.83 billion. Its market capitalization is $13.40 billion, giving it a market dominance of 0.39%. In the last 24 hours, SHIB's price has increased by 1.82%.
Shiba Inu reached an all-time high of $0.00008819 on October 28, 2021, while the all-time low recorded on November 28, 2020, was $0.0000005637. Since reaching that peak, the lowest price SHIB has dropped to is $0.000005821 (cycle low), while the highest price since then is $0.00004501 (cycle high). Currently, market sentiment surrounding SHIB is pessimistic and the Fear & Greed Index shows a level of 73, reflecting 'Greed'.
Shiba Inu's circulating supply is 589.26 trillion SHIB out of a maximum total supply of 589.74 trillion. The annual supply inflation rate is -0.01%, meaning 62.47 billion SHIB have been removed from circulation in the past year.
Shiba Inu Price Prediction: Will SHIB Drop to Zero?
Shiba Inu (SHIB) has experienced a significant 40% drop since reaching its peak in December, hitting an important long-term horizontal support level. Traditionally, such support zones often act as psychological barriers for traders, where increased buying activity can stabilize prices or trigger a recovery. However, the question remains: will SHIB's price recover or could it drop to zero?
Large trading volume and whale activity:
In the last 24 hours, SHIB has seen a spike of 41.39% in large trading volume, amounting to $76.48 million in capital inflow. Whale activity at this scale typically indicates strategic buying, often at perceived discounted prices. Such moves reflect the confidence of major investors in the token's future.
Assuming the $76.48 million inflow results in a price increase of 1.82%, then each $1 million inflow corresponds to a price increase of 0.0238% ($76.48 million ÷ 1.82%).
If whale activity maintains a similar inflow, this trend continuing into next week could contribute to a daily price increase of 0.166% (assuming an inflow of $10 million/day), supporting price stability.
Shiba Inu's plans to expand its social and DeFi platforms show a focus on utility. As DeFi tokens often increase when platforms innovate or expand, this could attract both retail and institutional investors. For example:
Successfully expanding the platform could enhance SHIB's total value locked (TVL), potentially leading to a price recovery of 10%-15% within a few months.
The increasing adoption of various DeFi services could boost demand for SHIB, countering selling pressure and reducing the likelihood of a sharp price decline.
Support resilience:
Technical analysis shows that SHIB's current price aligns with major support zones that have previously triggered recoveries. If the price holds at this level, the likelihood of a collapse will decrease to zero. However, breaking this support threshold could lead to a further decline to $0.0000005000.
Short-term volatility:
If whale activity remains and the overall sentiment in the cryptocurrency market stabilizes, SHIB could consolidate between $0.000005000 and $0.000008000 next month. This range reflects resistance levels established during previous price recoveries.
Mid-term scenario (2024):
With anticipated ecosystem updates, SHIB's price could regain interest. If updates drive DeFi adoption and enhance the token's utility, SHIB could reclaim the $0.00003 range, representing a price increase of 32% compared to the current level.
Long-term scenario (2025):
Analysts predict that Shiba Inu's ecosystem will surge by early 2025 and believe that the token could challenge its all-time high ($0.00008819). Assuming a cautious growth rate of 15% quarter-over-quarter, SHIB's price could reach around $0.000045 by early 2025—just over 50% from the previous ATH.
Could SHIB completely collapse?
While speculative assets like SHIB carry inherent risks, the likelihood of a collapse to zero seems very unlikely in the near term:
Whale support: The $76.48 million inflow suggests confidence from major investors.
Ecosystem expansion: The social and DeFi platform development plans bring utility, encouraging adoption.
Market sentiment: As long as SHIB maintains trading volume and positive growth, the value of this stock is likely to stay above important support zones.
Thus, SHIB's short-term performance depends on ongoing whale activity and ecosystem updates. While risks remain, the combination of strong community support, developer activity, and broader market recovery could drive SHIB's price up in the mid to long term, making a collapse to zero unlikely.
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