In This Article
Shiba Inu (SHIB) is a popular token in the meme coin space that boasts a loyal community of followers, rightly named the SHIBArmy. Apart from its strong community and meme coin appeal, the canine-themed token’s development team aims to introduce a high level of utility into the SHIB ecosystem. This is evident through the launch of the layer-2 Ethereum network Shibarium and the upcoming launch of the SHIB Decentralized Autonomous Organization (DAO). This SHIB price prediction will explore both the technical and fundamental factors that could influence the SHIB price in 2025.
Current Market Standing
Shiba Inu is the second biggest meme coin in terms of market cap, according to CoinMarketCap. The legacy crypto Dogecoin (DOGE) is the only meme coin that boasts a valuation greater than that of SHIB.
As of Sept. 16, SHIB was trading at $0.00001328. Since its launch, the meme coin’s price has risen a remarkable 994,000%. However, the dog-themed token has traded relatively sideways on the shorter-term time frames. This recent consolidation could be the precursor to a rally. To determine whether this might be the case, technical analysis will need to be performed.
Shiba Inu Technical Analysis
SHIB continues to capture the attention of cryptocurrency traders as it navigates a period of consolidation on the weekly chart. The latest technical analysis reveals critical support and resistance levels, alongside mixed indicator signals that suggest cautious optimism intertwined with bearish undertones.
Weekly chart for SHIB/USDT (Source: TradingView)
Over the past six weeks, SHIB has demonstrated a fluctuating yet slightly downward trend, closing at approximately $0.00001323 in the most recent week. The cryptocurrency has been oscillating within a defined range, testing various support and resistance levels that are crucial for determining future price movements.
On the upside, SHIB faces significant resistance at $0.00001352, $0.00001359, and $0.00001363. These levels represent formidable barriers that SHIB needs to overcome to establish bullish momentum. A successful breach above $0.00001363 could pave the way for higher price targets, signaling renewed investor confidence and potential upward momentum.
Conversely, on the downside, SHIB finds support at $0.00001320 and $0.00001317. These support levels are critical in preventing further declines. A sustained breach below $0.00001317 may trigger increased selling pressure, potentially leading SHIB towards lower price territories. Maintaining above these support levels is essential for sustaining the current price range and avoiding a deeper downturn.
The Exponential Moving Averages (EMAs) provide further insight into the current trend dynamics. The 9-week EMA is positioned slightly above the 20-week EMA, indicating a short-term bullish sentiment. This suggests that recent price action is experiencing upward pressure, albeit modest. However, the 20-week EMA has been gradually declining, reflecting a more bearish outlook over the extended period. The interplay between these two EMAs suggests a period of transition where short-term bullish movements are contending with longer-term bearish trends. Traders should monitor the EMAs for potential crossovers, which could signal significant shifts in momentum.
The Moving Average Convergence Divergence (MACD) presents mixed signals. Recent MACD histogram values have turned negative, indicating a potential bearish divergence. This suggests that the downward momentum might be gaining strength, which could lead to further price declines if the trend continues. Additionally, the Relative Strength Index (RSI) has hovered around the mid-50 mark, with recent values dipping below 50. This neutral positioning, coupled with slight bearish leanings, indicates that SHIB is neither overbought nor oversold. However, the downward drift in RSI hints at weakening bullish momentum, warranting caution among traders.
Overall, SHIB is currently at a pivotal juncture on the weekly time frame, balancing between key support and resistance levels amidst mixed indicator signals. While the short-term EMAs hint at potential bullish movements, the MACD and RSI suggest underlying bearish pressures that cannot be overlooked. Traders should remain vigilant, monitoring price action around critical levels and adjusting their strategies in response to evolving market conditions.
Fundamental Analysis
There are also several fundamental developments that point towards a positive outlook for Shiba Inu in 2025. Most notably is the launch of Shibarium, which has been going from strength to strength. Data from the decentralized finance (DeFi) tracker DefiLlama shows that Shibarium’s total value locked (TVL) stands at around $1.16 million. This is after the network established its all-time high TVL of over $3.7 million in March of 2024.
Shibarium does, however, still have a long way to go in order to compete with the likes of established chains such as Ethereum and Tron, which boast respective TVLs of $44 billion and $8 billion.
Looking at other layer-2 networks, Arbitrum, Base and Polygon still have a comfortable lead over Shibarium. Arbitrum has a TVL of $2.4 billion, while the TVL for Base and Polygon stand at approximately $1.55 billion and $867.28 million.
As more developers create projects on Shibarium, the network’s TVL is likely to increase. There is also the recent launch of the blockchain game Agent Shiboshi which is now accessible for download on the IOS webstore. This follows the game’s Android Play Store debut.
The testnet version of Shibarium has also gone live. Developers can subsequently experiment with the Puppynet testnet before migrating to the Shibarium mainnet. This could be the catalyst that propels Shibarium’s TVL to new heights.
Another major fundamental development is the upcoming launch of Shiba Inu’s DAO. The meme coin’s pseudonymous marketing lead “Lucie” said in an Aug. 25 post on X that the team is gearing up for the launch of the DAO. This will give SHIB holders the ability to vote on future initiatives as well as give them a say in the direction of the project.
Shiba Inu Price Prediction 2025
There are several technical events happening on SHIB’s weekly chart that suggest the meme coin might rally in 2025. Firstly, the MACD line is rising towards the MACD Signal line. The prior breaking above the latter is generally seen as a bullish sign. Given this narrowing margin between the MACD and MACD Signal lines is taking place on the weekly timeframe, a potential intersection could result in a medium to long-term rise in the Shiba Inu price.
Secondly, the RSI is also attempting to cross above its Simple Moving Average (SMA) on the weekly time frame. This could signal that buyers are growing stronger. A cross between these two lines could signal that bulls have gained control of SHIB, which could lead to the meme coin rallying.
These major technical events might happen in Q4 of 2024, setting the crypto up for a strong start to 2025. SHIB could subsequently attempt to flip the $0.00002932 resistance level into support in the first few weeks of 2025.
Overcoming this price barrier might then give SHIB the technical foundation needed to rise to $0.00005361. In an extremely bullish scenario, the meme coin could soar to a new all-time high above $0.00009030 by Q3 or Q4 of 2025.
If the bullish technical signs presented on the weekly chart do not play out or are not validated, SHIB could test the last safety net at $0.0000402 by the second quarter of 2025. A break below this mark could then put the Shiba Inu price at risk of falling further in the following weeks.
Is Shiba Inu A Good Investment?
Meme coins have been a hot topic in the crypto space in 2024, with many new tokens generating millions of dollars for savvy investors. While new meme coins have surged in recent weeks, SHIB has risen more than 78% in the last year.
What sets Shiba Inu apart from these new entrants into the market is the crypto’s strong community and the project’s team to increase its on-chain utility. Both of these factors, combined with the reputation and current market standing of SHIB, could lead to long-term gains for patient meme coin investors.
The euphoria around the majority of the meme coins that were launched in 2024 has already started to fade as well. Investors might subsequently turn to more established tokens in the lighthearted sector of the crypto market such as SHIB. This could lead to a strong price movement for the meme coin in 2025. Overall, this positions Shiba Inu as a potentially good investment.
Bottom Line
Are you ready to invest in SHIB? Very few if any analysts forecast its value going down to zero, although you can’t be sure these days, so make sure you always do your own research before making investment decisions. And keep in mind that cryptocurrency prices can be extremely volatile, so trading crypto always involves a high degree of risk.
Disclaimer: Coinpaper does not recommend that any cryptocurrency should be bought, sold, or held by you. Always conduct your own research and consult your financial advisor before investing in any digital asset.
Frequently Asked Questions
What is Shibarium and how might it affect SHIB's value?
Shibarium is a Layer 2 solution designed to enhance SHIB's utility by reducing transaction costs and increasing scalability. Its launch could potentially boost SHIB's appeal and value by expanding its use beyond a meme coin, attracting a wider audience and increasing its market presence.
Why do meme coins like SHIB experience high volatility?
Meme coins often experience high volatility due to their reliance on community hype and social media influence. Despite this, the growing acceptance and popularity of meme coins suggest they could offer stability and growth opportunities as the market matures.
Can the anticipated crypto bull run affect SHIB's price?
Yes, the anticipated crypto bull run, driven by renewed investor interest, regulatory clarifications, and technological advancements, is likely to positively impact SHIB's price. This broader market sentiment could act as a tailwind, amplifying SHIB's potential for significant price appreciation.
What technical indicators suggest about SHIB's future price movement?
Technical indicators like the MACD and RSI suggest a bullish outlook for SHIB. The MACD values are increasing, and the RSI remains high, indicating strong bullish momentum. However, a decrease in volumes calls for caution, as it might signal potential volatility or a price correction.
Is SHIB a good investment considering the current market dynamics?
SHIB shows potential for substantial returns in the medium to long term, especially with developments like Shibarium and the expected crypto bull run. However, investing in cryptocurrencies carries a high risk, and it's crucial to conduct thorough research before investing.
