- SHIB dropped 13.4% this week, nearing critical support at $0.000020 amid broader market selloffs.
- Shiba Inu hit a record 1.38 million funded wallets in 2024, adding over 100,000 new holders despite bearish sentiment.
- Bulls aim to recover above $0.000021, but a “death cross” signals risks of further declines toward $0.000015.
Shiba Inu (SHIB) saw its price tumble toward $0.000022 on Wednesday, marking a sharp 13.4% loss over the past week. Despite Ethereum’s sluggish performance in 2024, on-chain data suggests that SHIB continues to draw new buyers. So, is there hope for an early rebound?
SHIB Faces $0.000020 Support Amid Market Selloff
This week has been tough for Shiba Inu, as its price dropped 13.4% to $0.000022, reflecting broader crypto market struggles. Major assets like Bitcoin (BTC), Ethereum (ETH), and XRP also booked significant losses, signaling widespread bearish sentiment.
The downturn seems tied to hawkish signals from the U.S. Federal Reserve, prompting traders to reduce their exposure to high-risk assets like SHIB. Memecoins, known for their low liquidity and sensitivity to market sentiment, have seen diminished demand as cautious tones dominate the market.
After a brief attempt to stabilize around $0.000023 on Monday, sellers intensified their efforts mid-week, driving SHIB closer to the critical $0.000020 support level. At the time of writing, price action indicates potential consolidation near $0.000020, with continued volatility likely in the short term.
Record Growth: SHIB Hits 1.38 Million Funded Wallets
While Shiba Inu’s price struggles, its adoption story tells a different tale. According to IntoTheBlock’s Funded Wallets metric, the total number of unique addresses holding SHIB has reached an all-time high of 1.38 million. Impressively, over 100,000 new wallets have been added in 2024 alone.
This rapid growth highlights Shiba Inu’s global appeal, even as the spotlight shifts to other crypto trends, such as Solana memes. However, despite this expanding network, the bearish sentiment in the market remains strong, as investors brace for tighter monetary policies in 2025.
While this surge in wallet adoption might not translate to immediate price recovery, it underscores speculative confidence in SHIB’s long-term potential.
Shiba Inu Price Forecast: Will New Buyers Prevent a Breakdown?
After a sharp 16% decline in the last 24 hours, Shiba Inu is under significant bearish pressure. Technical indicators on the 4-hour chart reveal downside risks, with a “death cross” forming between the 50-day and 200-day simple moving averages. This bearish crossover suggests that sellers remain in control and could push SHIB toward $0.000020 or even $0.000015 if market weakness persists.
On the other hand, the Volume-Weighted Average Price (VWAP) at $0.000021 shows that bulls are trying to establish a short-term floor above this level. A sustained recovery above the VWAP could drive SHIB toward the next resistance at $0.000023, coinciding with the 50-day SMA.
However, for this bullish scenario to unfold, a broader market rebound and increased accumulation volume will be essential to counter the prevailing bearish narrative.
Final Thoughts
While Shiba Inu faces considerable challenges in the short term, its growing wallet adoption and network activity suggest strong long-term potential. The next few days will be critical as SHIB tests key support levels. Whether it stabilizes or continues its decline will depend largely on broader market trends and investor sentiment. For now, traders should watch for signs of recovery above $0.000021 to gauge the likelihood of a rebound.
