- SHIB has dropped over 50% since December 2024, facing bearish market sentiment.
- Falling whale transactions and a sharp decline in average transaction size signal waning confidence.
- SHIB may face further decline unless it closes above key support levels for potential rally.
Shiba Inu— SHIB, has significantly dipped in recent months. Since early December 2024, SHIB’s value has dropped over 50%. After the second inauguration of US President Donald Trump, the coin saw another 30% decrease. Whale activity has cooled significantly, adding to the negative sentiment. As SHIB continues to face these challenges, many are wondering what comes next. Let’s dive into the current market outlook and short-term price expectations for SHIB.
Shiba Inu’s Market Outlook
Shiba Inu has shifted from being just a memecoin to a promising utility token. With the launch of Shibarium, a Layer 2 scaling solution, and ShibaSwap, a decentralized exchange, SHIB aims to provide more than just hype. Shibarium’s total value locked (TVL) recently surpassed $2.3 million, showing growth in the ecosystem.
Despite these developments, interest from both whales and retail investors has slowed. Large transactions from whales and institutional investors, those above $100K, dropped significantly. On February 11, 115 of these transactions occurred. By February 17, that number had fallen to just 58. This decline, along with an 88% drop in average transaction size, signals a loss of confidence.
Mid-term Price Expectations and Technical Outlook
From a technical viewpoint, SHIB has been forming a double top pattern. This indicates potential for further decline. After failing to hold support around $0.000021, more bearish pressure seems inevitable. SHIB could drop another 25-30%, retesting the key support level of $0.000012 in the short term.
However, there’s still hope for SHIB. If the coin manages to close above a key falling logarithmic trend, a rebound toward the all-time high of $0.000088 could occur. For now, declining whale activity suggests a continued bearish outlook.
