Shiba Inu's Dramatic Weekend Plunge: Drivers and Growth Implications

Shiba Inu's price crashed 8% over the weekend, pushing its value to below $0.0000090 as of December 2025. This drop represents the latest chapter in a prolonged bear market for the meme coin, which has now fallen 62% since January of this year and suffered a devastating 75% loss from its previous peak. The technical indicators tell a grim story, with the relative strength index settled in the 40s while on-chain metrics show near-zero exchange inflows, outflows, active addresses, and transfer counts, signaling extreme market stagnation.

The most concerning development has been the massive -64.9 billion SHIB netflow that accompanied the weekend plunge, reflecting a significant withdrawal of investor confidence. This outflow pattern suggests that holders are moving the token out of circulation rather than displaying buying interest. A closer look at the token's fundamentals reveals that recent token burns have been minimal, accounting for only 0.1% of the total supply, which is insufficient to counterbalance the broader market pessimism.

Analysts point to historical patterns from 2020-2021 that often precede sharp rebounds in speculative assets like Shiba Inu. They suggest the current 360-day cycle is nearing completion as Bitcoin dominance hits multi-year highs, which could potentially trigger a dramatic recovery. However, the road ahead remains uncertain, with macroeconomic pressures and waning investor sentiment continuing to weigh heavily on the price action. While technical indicators suggest the token may be oversold, there is little evidence of meaningful buying pressure to drive a sustained reversal.

On-Chain Metrics and Sentiment

Shiba Inu's market behavior reflects an environment of near-total stagnation. Recent data shows active addresses, transfer counts, and exchange inflows/outflows all hovering at historically low levels, with no meaningful participation emerging despite token burns that have removed just 0.1% of the total supply. The 8% weekend price slide pushed SHIB below $0.0000090, while a net negative flow of -64.9 billion SHIB underscores a lack of buying pressure.

The RSI in the 40s suggests bearish sentiment but offers no clear signal for imminent recovery. Flatlining metrics-combined with the token's 75% drop from its 2024 peak-paint a picture of a speculative asset trapped in a prolonged slump. Macro factors, including risk-averse investor behavior and broader market pessimism, continue to dominate price action, overshadowing any technical or tokenomic developments.

While minimal burns and network updates have failed to spark renewed interest, the absence of macroeconomic tailwinds-such as inflation-driven risk appetite or regulatory clarity-keeps SHIB's prospects muted. Without a catalyst to reignite participation, the meme coin's stagnation may persist, leaving investors wary of near-term rallies.

Risk Assessment and Growth Implications

The downward spiral in SHIB's value continues to reflect deeper structural weaknesses beyond superficial tokenomics. Despite minimal token burns of just 0.1% of total supply, the meme coin has plummeted 75% from its 2024 peak, with analysts confirming these burns are too insignificant to counteract broader market pessimism and macroeconomic pressure. This erosion coincided with a stark collapse in network activity, where active addresses hit near-zero levels in December 2025, signaling virtually no meaningful adoption growth or organic demand.

The stagnation extends beyond mere user activity. SHIB's price remained stubbornly below $0.0000090 amid weak volume, zero buying pressure, and massive net outflows of 64.9 billion SHIB tokens. Technical indicators like the RSI in the 40s further underscore a market indifferent to its existence. While some analysts draw parallels to historical bear cycles and project explosive rebounds if Bitcoin dominance rises, these scenarios remain highly speculative. The token's 62% drop since January 2025 suggests a new reality where meme coins face permanent devaluation amid risk-asset aversion according to analysts.

Persistent macroeconomic headwinds-ranging from tightening monetary policy to global risk-asset sell-offs-continuously suppress speculative assets like SHIB. Even potential technical rebounds hinge on external market conditions unlikely to materialize soon. With token burns incapable of reversing decline and adoption metrics near total collapse, SHIB's long-term viability faces severe challenges. The 360-day cycle theory offers scant comfort when fundamental metrics remain unmoored from real-world utility or investor confidence.

Future Outlook and Catalysts

Technical indicators show Shiba Inu (SHIB) in an extreme bear market, trading below $0.0000090 and down 62% since January 2025 according to analysts, with a recent 8% weekend decline as reported by on-chain data. The token is oversold, as evidenced by the relative strength index (RSI) in the 40s, and on-chain metrics including exchange flows and active addresses are near zero, signaling severe market stagnation and no buying momentum.

Analyst projections suggest SHIB could rebound to $0.001-$0.01 by April 2026-a 12,330% to 124,200% surge-based on a historical pattern from its 2020-2021 cycle and a nearing 360-day completion. The key catalyst could be Bitcoin dominance hitting multi-year highs, which might reignite speculative interest in meme coins.

However, this scenario faces substantial headwinds. The token has declined 75% from its 2024 peak according to market analysis, amid macroeconomic pressures and minimal token burns (only 0.1% of total supply). Persistent macro risks, weak volume, and negative netflows of -64.9 billion SHIB in December 2025 indicate a lack of buying momentum. Until these frictions ease, the rebound remains speculative and dependent on favorable market conditions that may not materialize as projected.