In the past three months, SHIB's price has more than doubled, reaching a local high on December 7 before slightly declining during the market correction.
However, the high volatility of meme coins makes their price fluctuations hard to predict.
SHIB price history
Launched in August 2020 with the nickname 'Dogecoin killer', Shiba Inu attracted attention through its bold strategy of donating 50% of the supply to Ethereum founder, Vitalik Buterin.
This token quickly gained popularity in 2021, competing with Dogecoin and even achieving trading volumes comparable to Ethereum at its peak. However, the price has since dropped over 90%, falling below $0.000008 in 2023.
Source: TradingView
Despite the challenges, SHIB has shown signs of recovery. Its price has increased by over 220% in recent months, surpassing the $0.00003 level. Although still far from the historical peak in November 2021, the current price is equivalent to the highs from May of that year.
What is SHIB's burn rate?
The burn rate of Shiba Inu is an important metric in the ecosystem, reflecting the community's optimism towards the SHIB project.
By reducing the total supply, this strategy aims to increase scarcity and maintain positive sentiment, which could influence SHIB's price.
With transactions on Shibarium, SHIB is used to pay gas fees, and a portion is burned, contributing to the deflationary mechanism. However, to have a significant impact on price, larger-scale burns need to be implemented.
Correlation between Shiba Inu and Bitcoin
The correlation between Shiba Inu (SHIB) and Bitcoin (BTC) remains low. However, altcoins, including SHIB, often react to Bitcoin's price volatility, especially during bullish phases driven by institutional investment.
Source: IntoTheBlock
However, history shows that the correlation has weakened since the last bullish cycle.
Source: IntoTheBlock
According to data from Ark Invest, since the previous cycle's low, the price of Bitcoin has increased 5.72 times, closely matching the 5.18x and 5.93x increases in the 2015-2018 and 2018-2022 cycles.
If Bitcoin continues to follow the trend of these two cycles, its price could increase 15.4 times to around $243,000 next year, about 880 days after the cycle low in November 2021.
Altcoins are likely to follow BTC at the beginning of 2025.
Will the altcoin season return?
Since the beginning of the year, 20 out of the 50 largest cryptocurrencies by market cap have surpassed Bitcoin's gains.
November trading volume reached its highest level of the year and open contracts hit historical highs. Recent data from CryptoQuant shows that the altcoin trading volume is not driven by BTC pairs, suggesting genuine growth trends rather than capital shifts from Bitcoin to altcoins.
However, the recent increase in volatility has led to large liquidations, particularly in leveraged positions related to SHIB. A wave of liquidations causing $880 million in losses indicates that deleveraging is occurring in the market, continuing to apply downward pressure on assets like SHIB.
Layer 2 and collaboration with Chainlink
The Shiba Inu ecosystem has taken an important step with the integration of Chainlink's Cross-Chain Interoperability Protocol (CCIP) into the Shibarium network. This collaboration designates CCIP as the main cross-chain infrastructure for the ecosystem.
This collaboration opens up potential for expanding DeFi applications and reinforces Shiba Inu's role in the broader blockchain landscape.
SHIB developer Kaal Dhairya suggested on X that many exciting updates are in the pipeline.
Integrating Chainlink into Shibarium brings advanced features such as secure cross-chain token transfers and real-time market data access.
Over the past year, Shiba Inu has made significant progress with Shibarium, its Layer-2 scaling solution. With the adoption of practical products and staking, the project aims to achieve an important milestone in the cryptocurrency ecosystem, potentially driving prices higher.
Can SHIB reach $0.1 by 2025?
The short answer is 'no'. The price of SHIB, which reached an ATH of $0.0000667 in October 2021, does not show signs of a growth of 149,320.59% in this cycle based on market trends and the current burn rate.
The trading volume of SHIB is at $2.28 billion, though slightly decreased, it still indicates active participation from both whales and retail traders. However, if it fails to hold the support level at the 50 EMA line, the price could drop to lower levels, with the 200 EMA at $0.00002044 being a potential stability point.
Without a recovery from the broader market or new buying momentum, SHIB risks continuing to decline.
What price will SHIB reach in 2025?
The Relative Strength Index (RSI) is a simple yet effective tool for determining optimal buy or sell points for Shiba Inu (SHIB) in medium and long-term periods.
The RSI ranges from 0 to 100. Generally, an index above 70 indicates that an asset is in an 'overbought' state, signaling a potential downward correction, while an index below 30 indicates that an asset is in an 'oversold' state, suggesting a potential recovery. This makes the RSI an important indicator for measuring market momentum and optimizing trade timing.
SHIB/USDT 4-hour chart | Source: TradingView
In a bullish cryptocurrency trend, Shiba Inu's RSI often remains above 30 and frequently surpasses 70, reflecting strong buying momentum. Conversely, in a bearish trend, the RSI rarely exceeds 70 and often drops to 30 or lower, signaling weakening market conditions.
Currently, market sentiment indicates that SHIB's nearest target is $0.00003. Achieving this milestone could pave the way for a prolonged price rally, pushing to weekly highs of $0.000033.
SHIB/USDT 4-hour chart | Source: TradingView
Notably, Shiba Inu's burn rate has surged to 1.068%, leading to the destruction of over 51.7 million tokens. Additionally, the total value locked (TVL) in Shibarium has increased by 850% since September, reflecting increased activity in the ecosystem.
Source: Santiment
Despite facing recent challenges, 64% of SHIB investors are still in profit, demonstrating the resilience of the community and Shiba Inu's strong position in the meme coin space.
On a larger timeframe, the weekly chart shows bullish potential in 2025. With the December correction behind, SHIB has a significant opportunity to reclaim the $0.0000300 level in the first quarter of 2025.
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