Shiba Inu's 8% Drop Sparks Debate: Community Hope vs. Bearish Signals

Shiba Inu (SHIB), one of the most prominent memecoins, has seen a recent price decline of 8%, sparking renewed interest in its short-term and long-term trajectory. As of the latest data, SHIB trades at $0.000012, with a market capitalization of $7.25 billion, representing 1.33% growth in the last 24 hours. Over the past week, however, the token has dropped by 2.42%, reflecting a broader bearish trend in the memecoin sector. The all-time high of $0.000090, set in September 2021, remains a distant benchmark, with the token down 86% from that level.

On-chain activity has shown mixed signals. While the token’s 24-hour trading volume stands at $244.40 million, a 3.46% increase compared to the previous day, weekly volume has dropped by 15.44%. This decline suggests reduced liquidity and trading interest, which could exacerbate price volatility. In the last 24 hours, there were 3,571 buyers and 3,446 sellers, with a net buyer ratio of 52%, indicating some accumulation despite the downturn. The token has also experienced a spike in circulating supply, which has contributed to downward pressure on its price.

The broader memecoin market has also shown uneven performance. SHIB ranks fifth among memecoins, outperforming the broader crypto market’s 1% gain but trailing behind WIF, which has surged by 5%. In contrast, the token lags behind Dogecoin, which has gained 9% over the past month. This divergence highlights the fragmented nature of the memecoin sector, where market sentiment and community activity play a significant role in price dynamics.

Technical indicators offer further insight into SHIB’s near-term prospects. Recent on-chain data suggests bearish divergence in the relative strength index (RSI), a sign that selling pressure may persist. Additionally, the token has failed to break above key resistance levels, with bulls defending support at $0.00001252. This support level is critical for SHIB to avoid a deeper correction. A successful bounce from this area could push the price toward $0.00001393, offering a potential floor for near-term buyers.

Community and ecosystem developments remain pivotal to SHIB’s future. The Shiba Inu ecosystem continues to expand with the development of Shibarium, a Layer-2 blockchain designed to enhance scalability and reduce transaction costs. While Shibarium has seen growing adoption, its contribution to SHIB’s price recovery remains uncertain. Additionally, the ShibaSwap decentralized exchange has seen increased activity, but this has not translated into sustained price appreciation. Recent whale activity has also been a point of focus, with large holders trimming their positions, which could signal a lack of conviction in SHIB’s long-term potential.

Analysts remain divided on SHIB’s path forward. Some argue that the token’s abundant supply and lack of fundamental utility continue to limit its growth potential. Others point to the token’s role as a community-driven project, emphasizing its potential to benefit from renewed memecoin enthusiasm or broader DeFi adoption. While a price rebound to $0.00001295 remains a possibility, significant challenges persist, including macroeconomic headwinds and competition from other high-profile tokens like Mutuum Finance (MUTM), which is gaining traction in the presale phase.

Source: [1] SHIBA INU Price, SHIB Price, Live Charts, and Marketcap (https://www.coinbase.com/price/shiba-inu) [2] Price Prediction If Mutuum Finance Breaks $0.50 In 2025 (https://www.mitrade.com/insights/news/live-news/article-3-1086200-20250902) [3] Mutuum Finance Crypto Price Forecast: How Much $350 ... (https://www.cryptopolitan.com/mutuum-finance-crypto-price-forecast-how-much-350-invested-today-will-be-by-2026-2028-and-2030/)