Shiba Inu’s Crash or Comeback? Q1 2025 Price Outlook

After its recent decline from $0.000025 to $0.000015, Shiba Inu lost its market position from the 12th largest crypto to the 17th largest crypto, showing a deeper correction than others.
Crypto, Voice of Crypto, Shiba Inu
Edited by:
Krutika Adani
Published on

Key Insights:

  • Shiba Inu declined a lot more than other altcoins sliding down from the 12th largest crypto to the 17th largest at press time.

  • This greater decline in Shiba Inu could be due to being an Ethereum Layer-2 blockchain and the greater correction in cryptocurrencies.

  • In the future we could see a reversal towards $0.000015 but only after Shiba Inu's on-chain metrics improve.

  • Shiba Inu is now resting on a critical support level, below which it risks falling into bear territory.

Shiba Inu's Recent Fall Explained

In the last three months, we saw Shiba Inu make a high of $0.000033 in November 2024 and fall to $0.000015 today. However, in the last week, the fall accelerated as Shiba Inu fell from $0.000025 to $0.000015 due to memecoin selloff and liquidity worries in the crypto markets.

Shiba Inu Price Trends in the Last 1 Year

Shiba Inu Price Trends in the Last 1 Year

CoinMarketCap

Now, we see Shiba Inu at the crossroads. If its price falls further, we could see a bear phase in Shiba Inu. If the prices bounce back, we see a slow grinding rally toward its November 2024 high of $0.000033.

Will Shiba Inu Go Back Up Again?

Yes, but it may take a while before Shiba Inu goes back upside. This is because, at present Shiba Inu has formed a descending triangle pattern on its daily charts. The pattern is a bullish one but the current markets lack any major trigger to induce a breakout in this.

Descending Triangle in Shiba Inu

Descending Triangle in Shiba Inu

Tradingview

However, there is still a chance that Shiba Inu breaks out of this pattern. Should such a breakout happen, we expect Shiba Inu to move towards $0.000028 and then towards $0.000033.

In the event of a breakdown, which seems the most probable scenario, we might see Shiba Inu breaking down from $0.000015 to $0.000010. Should this happen, Shiba Inu would break its bull market base support and risk falling into a bearish phase.

Strong Improvement in Fundamentals Required

The next trigger that could lift Shiba Inu is its fundamentals. Given its cheaper blockchain, Shiba Inu could witness increased user flows as its DeFi and dApp ecosystem matures. This growth would be slow and grinding but is the most stable way, unlike other Solana-based memecoins which grow just on FOMO.

Shibarium has gained a lot in the last 1.5 years of its existence. The blockchain is witnessing a high growth rate and has overtaken some of the established Layer-2 networks. At press time, Shibarium had an impressive 4.7 million transactions per day, comparable to 7.2 million per day of Base, and 3.4 million per day of Polygon.

Shibarium Daily Transaction Count Reaches Close to 5 Million/day

Shibarium Daily Transaction Count Reaches Close to 5 Million/day

ShibariumScan.io

In the future, we expect further growth due to its ultra-low transaction fee of $0.000031 per transaction. As crypto users start shifting more towards self-custody, we could see a sharp increase in Shiba Inu's daily transaction count.

Additionally, in just over 1.5 years Shibarium has a complete dApp ecosystem with its own DEXs, staking dApps, blockchain bridges, and much more. At press time, more than 50 dApps exist on Shibarium. Since the blockchain is based on Ethereum, we could see further migrations from the ETH blockchain due to the FUD around Ethereum.

List of Shibarium dApps

List of Shibarium dApps

ShibariumScan.io

Shiba Inu has also seen a decent increase in its burn rate which helps it keep its token supply in a deflationary mode.

How Does the Future Look Ahead For $SHIB?

Fundamentally, Shiba Inu has a bright future due to it slowly becoming a complete crypto ecosystem with its own blockchain, DEX, and DeFi apps, and with its governance and reward tokens.

The current decline in SHIB could be explained by a sector wide sell-off in memecoins. Further, since Shiba Inu exists primarily on Ethereum, the ongoing FUD in it causes direct harm to SHIB which can also be seen on other L2 coins like Arbitrum and Optimism.

In the coming few days after the markets consolidate, an expected rally in Ethereum could lift all the altcoins based on it too. However, we expect the overall memecoin markets to fall further as the "Supercycle" ends. The end of this supercycle would have a deep impact on all memecoins

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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