Shiba Inu, often called SHIB, is a cryptocurrency that started in 2020. It was created as a fun, internet-based coin and is often described as a meme coin. Recently, SHIB has become a pale shadow of its earlier self. Its price has fallen by double digits in just a few weeks. With big changes in value, many investors are watching carefully to see what might happen next.
Right now, SHIB is trading around $0.000006127. This price is about 20% lower than it was two weeks ago. The total market value of SHIB, called the market cap, is around $3.6 billion. This puts SHIB at about the 30th spot in ranking among cryptocurrencies. A year or so ago, in the spring, SHIB’s market cap was much higher – close to $10 billion. This shows how big the recent drop has been for people who hold SHIB.
Many analysts are warning that the bad times for investors who own SHIB might be just starting. A well-known market watcher named Ali Martinez has said that SHIB’s recent drop below the price of $0.00000667 could open the door to a much larger fall. He suggested that the price could potentially fall to around $0.00000138. If that happens, it would be a drop of about 77% from current levels. It is important to remember that predicting exact prices in the world of cryptocurrencies is very difficult, and many different experts have different opinions.
There are several other signals that traders watch to guess what might happen next. In the last day, the number of SHIB coins that the Shiba Inu team and its community have burned is reported as 483. For those who are new to crypto, a burn means destroying coins so they cannot be used again. The goal of burning is to reduce the total supply of SHIB. The idea is simple: if there are fewer coins in existence but the demand (people wanting to buy SHIB) stays about the same or rises, the price could move higher. But if demand stays weak, burning alone may not lift the price.
Today, the burning activity is much smaller than in the past. The last 24 hours saw 483 SHIB burned, which is about 99% less than the amount burned the day before. This tells us that the burning mechanism is not creating a lot of movement right now. The burning program was adopted in 2022 to gradually lower the circulating supply and potentially raise the coin’s value over time. According to data, the current circulating supply is about 585.46 trillion SHIB after more than 410.7 trillion SHIB have been burned over the years. In simple terms, there are a lot of SHIB tokens still in circulation, even though a large number have been burned to reduce the total supply over time.
There is more to the picture. A project named Shibburn, which shares information about how many SHIB are burned, has not been very active recently. The most recent update available, from January 9, showed that both daily and weekly burn rates were not strong. This means there has not been much burning activity lately, which can slow down the effect of burning on price. In simple words, not many SHIB coins are being removed from the market right now.
Another factor investors watch is the relative strength index or RSI. RSI is a tool used by traders to judge whether a crypto’s price is overbought or oversold. An RSI above 70 often suggests that the asset may be overbought and could pull back soon. In the last few hours, SHIB’s RSI moved above 70. That is a sign some traders see as a signal for a possible price pullback in the near term. Remember, RSI is just one tool among many, and it does not always predict what will happen next.
On the other hand, not everyone agrees that SHIB must fall. A different analyst who uses the name Vuori Trading, and posts on X (formerly Twitter), argued that SHIB might still rise. They described the current situation as a bear trap — a sudden price move that tricks investors who are betting on prices to go down. The idea is that big buyers could push the price higher and trap those who expected further declines. Vuori Trading even gave a target of at least $0.00014 per SHIB. If this target is reached, SHIB would rise by more than 2,200% from today’s price. It is important to know that such predictions are highly speculative and depend on many factors in the market.
Despite the recent price drop, some investors are not rushing to sell their SHIB holdings. Data from CryptoQuant, a company that tracks coins on exchanges, shows that the number of SHIB coins held on cryptocurrency exchanges has been going down over the past month. This trend suggests more investors are moving their coins off exchanges into personal wallets. When coins are held away from exchanges, there is typically less selling pressure in the market because it is harder to sell quickly. This can be a sign that investors want to hold SHIB for the longer term, rather than sell into a falling market just to cut losses.
In simple terms, the recent move for SHIB is a mix of warning signs and hopeful signs. The price has fallen a lot, and some analysts see more potential declines. Others believe SHIB could bounce back, especially if buyers step in and more SHIB is taken off the market. The real direction will depend on many things, including broader market conditions, how many people want to buy SHIB, and how active the burning program remains. For now, investors should stay informed and consider how much risk they are willing to take with this very speculative asset. The report you are reading reflects a summary of what analysts and market data are showing at this moment, and not a guaranteed forecast. The original piece comes from CryptoPotato and shares multiple viewpoints to help readers think about what might happen next.
What to watch next
- Key price level: If SHIB stays around or below $0.000006 while selling pressure remains low or moderate, downward moves could continue. If buyers push the price back above the $0.00000667 level, it might improve the outlook for bulls.
- Burn activity: More SHIB burning could slowly reduce the supply and, with continued demand, support a price rise over time. However, the last few days showed very little burning activity, which may limit the immediate impact.
- RSI readings: If RSI stays above 70 for a period, traders may expect a pullback. If RSI cools down toward neutral territory, it could open the door for a bounce if other factors align.
- Exchange reserves: A continuing decline in SHIB on exchanges can indicate investors are storing coins in personal wallets and may be less willing to sell. Look for any signs that reserves start to rise again, which could signal more selling pressure.
In short, SHIB’s future path remains uncertain. There are bearish signals that suggest caution, but there are also bulls who see potential upside if certain market conditions improve and if the burning program continues to slowly reduce supply. As with any cryptocurrency, it is important to do your own research, understand how the market works, and only invest money you are prepared to lose. The information here reflects the latest published data and opinions from analysts at the time of writing, including some expectations from Ali Martinez and Vuori Trading. The original article hosting these perspectives comes from CryptoPotato, which reports on a range of market opinions and data points for many digital assets.