Shiba Inu (SHIB) is experiencing a significant price plunge, trading near its lowest range in over a year at around $0.0000096, with Bollinger Bands compressing toward the lower boundary of $0.0000062. A breach could lead to a 35% drop, signaling caution for holders amid bearish historical patterns.
-
SHIB price analysis reveals compressing Bollinger Bands on monthly and weekly charts, pushing toward critical support at $0.0000062.
-
Long-term charts show seven red candles in the last nine months since early 2024 peaks near $0.000030, indicating sustained downward pressure.
-
Historical data from sources like TradingView highlights November’s median return of -3.8% for SHIB, with reduced on-chain activity pointing to potential further corrections.
Discover the latest Shiba Inu price plunge analysis: SHIB nears $0.0000062 support amid bearish signals. Stay informed on crypto trends and protect your investments—read now for expert insights! (148 characters)
What is causing the current Shiba Inu price plunge?
Shiba Inu price plunge stems from sustained bearish momentum, with the token compressing within Bollinger Bands on both monthly and weekly timeframes, approaching the lower boundary at $0.0000062. This pattern, developing since late summer, shows limited upside to the midband around $0.000012, reflecting defensive investor behavior focused on loss protection rather than accumulation. Trading at approximately $0.0000096, SHIB risks a 35% drop if support breaks, exacerbated by historical seasonal weaknesses in November and December.
How are Bollinger Bands influencing SHIB’s market behavior?
Bollinger Bands provide a technical framework for volatility assessment, and for SHIB, the current compression signals impending price movement. On the monthly chart, bands have narrowed since late summer, confining price action between $0.0000062 and $0.000012, as observed in data from TradingView. Weekly bands mirror this squeeze, with the token hugging the lower band, indicating reduced volatility but heightened risk of a downside breakout.
Expert analysts, such as those cited in financial reports from CoinMarketCap, note that such compressions often precede sharp declines in meme coins like SHIB, especially when accompanied by thinning trading volumes on major exchanges like Binance and Coinbase. On-chain metrics reveal decreased burn activity, with SHIB’s burn rate dropping by over 20% in recent months according to Shibarium network data. This combination suggests traders are bracing for capitulation rather than bullish reversal.
Historically, similar band squeezes in 2023 led to 40% corrections before rebounds, underscoring the need for caution. Short-term investors appear reactive, selling into minor rallies, which keeps upward momentum capped. If volume doesn’t surge, the base case remains a retest of $0.000006, potentially unfolding over the next few weeks.
SHIB/USD by TradingView
The long-term perspective amplifies concerns, with SHIB posting seven red monthly candles out of the last nine since its early 2024 peak near $0.000030. For the first time since 2023, monthly closes have averaged below prior-year levels, a pattern that preceded major drops in past cycles, per historical price data from platforms like CoinGecko.
SHIB price history bearish too
Seasonal trends further underscore the bearish outlook for SHIB. November has been statistically challenging, delivering a median return of -3.8% and an average of -1.4% across multiple years, based on aggregated data from crypto analytics firms like Glassnode. December fares worse, with even softer averages, often aligning with year-end profit-taking in the broader market.
Current on-chain indicators align with this history: spot trading volumes on Binance and Coinbase SHIB pairs have thinned by approximately 15% week-over-week, signaling waning interest. Reduced burn activity, a key driver for SHIB’s deflationary narrative, has slowed, with only modest tokens sent to dead wallets in recent reports from the Shiba Inu community trackers.
This confluence points to traders positioning for a final capitulation phase before any rebound. Without reclaiming the $0.0000122 resistance with strong volume—ideally exceeding 20% above current levels—the indicators favor a retest of $0.000006 support. Such a move could initiate another 35% correction phase by the end of 2025, testing holder resolve once more.
Frequently Asked Questions
Will Shiba Inu price drop below $0.0000062 in the coming months?
Based on current Bollinger Band compression and historical patterns, a drop below $0.0000062 is a plausible scenario if resistance at $0.0000122 holds firm. TradingView data shows similar setups leading to 30-40% declines in past instances, though a volume spike could alter this trajectory. Monitor on-chain burns for signs of reversal, as they have historically supported price floors.
What factors are driving the Shiba Inu price plunge right now?
The Shiba Inu price plunge is primarily driven by technical compression in Bollinger Bands, seasonal weaknesses in November, and declining on-chain activity like reduced burns and spot volumes. As Google Assistant might explain, this creates a perfect storm for downside pressure, with SHIB trading defensively near $0.0000096 after failing to break higher since late summer. Expert views from Chainalysis emphasize the role of broader market sentiment in meme token volatility.
Key Takeaways
- Bollinger Band Compression: SHIB’s monthly and weekly bands are squeezing toward $0.0000062, signaling high risk of a 35% price drop if breached, based on TradingView indicators.
- Historical Bearish Trends: Seven red candles since early 2024 and November’s -3.8% median return highlight seasonal vulnerabilities, per Glassnode analytics.
- On-Chain Weakness: Thinning volumes and slower burns on Binance and Coinbase pairs suggest capitulation ahead—consider protective strategies for holdings.
Conclusion
In summary, the Shiba Inu price plunge reflects a confluence of technical compression via Bollinger Bands, bearish historical precedents, and subdued on-chain metrics, positioning SHIB perilously close to $0.0000062 support. While meme tokens like SHIB have shown resilience in past cycles, current signals from sources such as CoinMarketCap and community data urge vigilance. As 2025 progresses, a decisive breakout above $0.0000122 could signal recovery, but for now, investors should prioritize risk management—stay tuned for updates on this evolving crypto landscape.
