Shiba Inu Price at Critical Juncture: Will SHIB Rebound or Decline Further?

Shiba Inu at a Crossroads: Will Demand Rebound or Continue to Wane?

Shiba Inu (SHIB), once the darling of the meme coin frenzy, is facing a critical juncture as its price struggles to regain momentum amid waning demand. The token, which surged to unprecedented heights during the 2021 bull run, has seen its value fluctuate wildly in recent weeks, leaving investors questioning whether it can reclaim its former glory.

A Meme Coin Under Pressure

Shiba Inu’s price has been on a downward trajectory, currently trading at $0.00001173, a stark contrast to its all-time high of $0.00008845 in October 2021. Recent data indicates that SHIB holders are offloading their tokens, contributing to a 10% weekly decline and pushing the asset to a two-month low. Analysts attribute this sell-off to broader market sentiment shifting away from speculative assets, with meme coins bearing the brunt of the downturn.

Despite its challenges, SHIB’s ecosystem continues to show resilience. The Shibarium layer-2 network has seen increased adoption, with transaction volumes rising steadily. Additionally, token burns have surged, with over 116 million SHIB permanently removed from circulation in a single day—a 112,000% spike in burn rate. While this deflationary mechanism is designed to support price appreciation, its impact has been muted by overwhelming selling pressure.

Market Sentiment and Technical Outlook

Technical indicators paint a mixed picture for SHIB. The Relative Strength Index (RSI) sits at 35.60, suggesting the asset is neither oversold nor overbought, while the 50-day and 200-day moving averages indicate a bearish trend. Some analysts, however, see potential for a rebound. A double-bottom pattern has formed on the charts, hinting at a possible 20% rally to $0.000016 if buying pressure returns.

"SHIB is at a critical support level," notes a CoinDesk market analyst. "If it holds above $0.000011, we could see a short-term bounce, but breaking below this level may trigger further declines toward $0.000010".

External Factors: Elon Musk and Market Speculation

Speculation around Elon Musk’s influence on meme coins has also resurfaced. With rumors circulating that his platform X (formerly Twitter) may integrate in-app crypto trading, SHIB and Dogecoin (DOGE) have seen renewed interest. While no official confirmation exists, such a move could provide a much-needed boost to SHIB’s liquidity and adoption.

However, not all experts are optimistic. "The ‘one-cent dream’ for SHIB remains highly unrealistic given its massive circulating supply," warns a CoinCodex analyst. "Even with aggressive burns, reaching $0.01 would require a market cap exceeding that of major global economies".

What’s Next for Shiba Inu?

The coming weeks will be crucial for SHIB. If the token can maintain its current support and attract fresh demand, a recovery toward $0.000014—a 27% increase from current levels—is plausible, as predicted by some short-term forecasts. Conversely, failure to hold key levels could see SHIB test $0.000010, a psychological threshold that may invite panic selling.

For now, investors are advised to monitor on-chain activity, burn rates, and broader market trends before making decisions. With meme coins heavily reliant on sentiment, any major catalyst—be it a celebrity endorsement, exchange listing, or macroeconomic shift—could swiftly alter SHIB’s trajectory.

Share your thoughts on our X: Do you believe Shiba Inu can stage a comeback, or is the meme coin era fading?

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.

Sources:

• FXStreet: "Shiba Inu Price Forecast: SHIB Demand Wanes as Holders Offload Meme Tokens"

• Cryptonomist: "Solana, Sui, and Shiba Inu Price Analysis"

• ZyCrypto: "Dogecoin, Shiba Inu, XRP Price Explosion Incoming as Elon Musk’s X Plans In-App Trading"

• TronWeekly: "Shiba Inu (SHIB) Bulls Eye Breakout as $0.000011 Holds"

• The Crypto Basic: "Here’s Price of 1 Shiba Inu If SHIB Matches Elon Musk’s Net Worth"

• CoinSpeaker: "Shiba Inu (SHIB) Price Finds Its Floor—Big Buyers Think So"