SHIB Sees Significant Losses in Deep Red — What’s Happening?

Shiba Inu (SHIB) is currently experiencing significant losses, with its price dropping 2.75% in the last 24 hours to $0.00001187. This downturn is part of a broader market trend, with SHIB’s market capitalization standing at $2.74 trillion ¹.

Key Factors Contributing to the Decline:

• Market Volatility: The cryptocurrency market is known for its volatility, and SHIB is no exception. The recent price drop could be attributed to market fluctuations and investor sentiment.
• Lack of Major News: Unlike previous price surges, there hasn’t been any major news or developments that could have triggered the recent decline.
• Broader Market Trends: SHIB’s price movement is often influenced by broader market trends, including Bitcoin’s dominance and overall market sentiment ².

Recent Developments and Future Prospects:

• On-Chain Data: On-chain data suggests a bullish picture, with SHIB’s exchange outflow showing a spike and dormant wallets becoming active. A weekly candlestick close below $0.000019 could invalidate this bullish thesis.
• Technical Signals: Some analysts predict a potential rally, citing technical signals such as the 50-day and 200-day moving averages. A breakout from the current range could lead to a notable upward or downward trend ³ ⁴.

Expert Insights and Predictions:

• Potential Price Targets: Some analysts predict that SHIB could reach $0.00003036 if it breaks out of its current range. Others predict a potential surge to $0.001 if SHIB gains 100% yearly.
• Market Cap Comparison: If SHIB overtakes Dogecoin’s market capitalization, its price could potentially double ¹.

Keep in mind that cryptocurrency markets are highly unpredictable, and prices can fluctuate rapidly. Staying informed with the latest news and market analysis is crucial for making informed investment decisions.

Shiba Inu Burns Take a Deep Dive

Shiba Inu’s burn rate has seen significant fluctuations recently. Here are some key updates.

• Recent Burn Rate Spikes: The burn rate surged over 1,000% in January 2025, removing 6.7 million tokens from circulation. This reduction in supply could positively impact SHIB’s price, given strong demand.
• Massive Burns: In July 2024, the burn rate exploded by 4,677%, with 301,686,518 SHIB tokens burned in eight transactions. Despite this, SHIB’s price didn’t see significant gains due to a resistance barrier between $0.000018 and $0.000019.
• Community Efforts: The SHIB community is advocating for exchanges to set aside SHIB for burning, which could further reduce the circulating supply. The upcoming Shibarium auto-burn system is expected to impose a deduction for SHIB burns on every Shibarium L2 transaction.
• Large-Scale Burns: In another instance, 13 billion SHIB tokens were destroyed in 24 hours, with developers burning 9.6 billion SHIB tokens and an additional 3.8 million SHIB tokens in separate transactions.
• Price Impact: Despite these burn rate spikes, SHIB’s price has seen mixed movements. The token’s value is influenced by broader market trends, investor sentiment and the overall cryptocurrency landscape.

These developments indicate a strong focus on reducing SHIB’s circulating supply, which could have long-term implications for the token’s value. However, the short-term price movements are influenced by various market factors.