Over the past three months, SHIB’s price has more than doubled, reaching a local high on December 7 before falling slightly during the market correction. However, the high volatility of meme coins makes their price movements difficult to predict.
SHIB Price History
Launched in August 2020 with the nickname “Dogecoin killer,” the Shiba Inu attracted attention for its bold strategy of donating 50% of its supply to Ethereum founder Vitalik Buterin.
The token quickly rose to prominence in 2021, rivaling Dogecoin and even reaching trading volumes on par with Ethereum at its peak. However, the price has since fallen more than 90%, falling below $0.000008 in 2023.
Despite the difficulties, SHIB has shown signs of recovery. Its price has increased by more than 220% in recent months, surpassing $0.00003. While still far from its all-time high in November 2021, the current price is equivalent to the highs from May of the same year.
What is SHIB Burn Ratio?
The burn rate of Shiba Inu is an important indicator in the ecosystem, reflecting the community's optimism towards the SHIB project.
By reducing total supply, this strategy aims to increase scarcity and maintain positive sentiment, which could in turn affect the price of SHIB.
With transactions on Shibarium, SHIB is used to pay for gas fees, and a portion is burned, contributing to the deflationary mechanism. However, to have a significant impact on the price, larger scale burns are needed.
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 price movements, especially during bull runs driven by institutional investment.
However, history shows that the correlation has weakened since the last bull cycle.
According to data from Ark Invest, since the last cycle bottom, Bitcoin price has increased 5.72x, which is similar to 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 November 2021 cycle bottom.
Altcoins are likely to follow BTC as early as 2025.
Is altcoin season back?
Since the start of the year, 20 of the top 50 cryptocurrencies by capitalization have outperformed Bitcoin.
November trading volume hits yearly high and open interest hits all-time high. Recent data from CryptoQuant shows that altcoin trading volume is not driven by BTC pairs, suggesting a real uptrend rather than a capital flight from Bitcoin to altcoins.
However, the recent surge in volatility has led to large liquidations, particularly in leveraged positions involving SHIB. A wave of liquidations that cost $880 million suggests that deleveraging is underway in the market, further putting downward pressure on assets like SHIB.
Layer 2 and Partnering with Chainlink
The Shiba Inu ecosystem has taken a major step forward with the integration of Chainlink's Cross-Chain Interoperability Protocol (CCIP) into the Shibarium network. This partnership positions CCIP as the primary cross-chain infrastructure for the ecosystem.
This partnership opens up the potential for expanding DeFi applications and solidifies the Shiba Inu's role in the larger blockchain landscape.
SHIB developer Kaal Dhairya hinted on X that more exciting updates are on the way.
Integrating Chainlink into Shibarium brings advanced features like secure cross-chain token transfers and access to real-time market data.
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 a major milestone in the cryptocurrency ecosystem that could drive prices higher.
Can SHIB reach $0.1 by 2025?
The short answer is “no”. SHIB price, which reached ATH at $0.0000667 in October 2021, shows no signs of a 149,320.59% increase in this cycle based on current market trends and burn rates.
SHIB’s trading volume, at $2.28 billion, although slightly down, still shows active participation from both whales and retail traders. However, if the support at the 50 EMA fails to hold, the price could fall lower, with the 200 EMA at $0.00002044 as a potential point of stability.
Without a rebound from the broader market or fresh buying momentum, SHIB is at risk of continuing to decline.
What price will SHIB set 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 the medium and long term.
RSI ranges from 0 to 100. Typically, a reading above 70 indicates an asset is “overbought,” signaling a potential correction, while a reading below 30 indicates an asset is “oversold,” suggesting a potential recovery. This makes RSI an important indicator for gauging market momentum and optimizing trade timing.
During cryptocurrency uptrends, the Shiba Inu RSI often stays above 30 and crosses the 70 mark multiple times, reflecting strong buying momentum. Conversely, during downtrends, the RSI rarely crosses 70 and often drops to 30 or below, signaling weakening market conditions.
Currently, market sentiment suggests that SHIB’s nearest target is $0.00003. Achieving this level could pave the way for an extended rally, pushing the price towards the weekly high at $0.000033.
Notably, Shiba Inu’s burn rate has spiked to 1,068%, resulting in the destruction of over 51.7 million tokens. Additionally, Shibarium’s total value locked (TVL) has increased by 850% since September, reflecting increased activity in the ecosystem.
Despite recent challenges, 64% of SHIB investors are still profitable, demonstrating the resilience of the community and Shiba Inu's strong position in the meme coin space.
On a larger time frame, the weekly chart shows bullish potential in 2025. With the December correction over, SHIB has a great chance to reclaim $0.0000300 in Q1 2025.