Shiba Inu (SHIB) is under renewed pressure as its market position continues to weaken. Once firmly established among the top 15 cryptocurrencies, the token is now trading near the bottom of the top 40 in terms of market capitalization. Recent price movements, combined with declining interest, are reigniting questions about SHIB's ability to rebound during the next market cycle.
In brief
- Shiba Inu has fallen to 37th place by market capitalization, with continued losses reinforcing the risk of exiting the top 40 soon.
- SHIB's price has fallen more than 65% since its peak in December 2024, underperforming almost all large-cap crypto assets over the past year.
- Technical data shows support near $0.000007, but current signals are more suggestive of stabilization than a confirmed trend reversal.
- Declining hype, low adoption of Shibarium, and reduced trading volumes continue to weigh on SHIB, despite a still large community.
Shiba Inu falls behind large-cap peers after sharp annual decline
Ranked 37th in the crypto market, Shiba Inu has a valuation of around $4.17 billion. However, continued losses increase the risk of memecoin falling out of the top 40 if current trends continue. For an asset once popular with retail investors, this decline illustrates both broader market weakness and the structural challenges unique to meme-based cryptocurrencies.
SHIB had a rough 2025 after peaking around $0.000032 in December 2024. Since that peak, prices have been on a gradual downward trajectory. According to on-chain data, the token has declined by 11.2% over the last month and more than 65% since its peak at the end of 2024. Performance indicators also confirm that SHIB underperforms the majority of large-cap crypto assets.
Several elements help explain the persistent pressure on the price of Shiba Inu:
- SHIB has underperformed 99% of the top 100 crypto assets over the past year.
- The memecoin is trading below its 200-day simple moving average.
- It has only recorded 10 positive daily closes over the last 30 sessions.
- Shiba Inu remains approximately 92% below its all-time high.
- Transaction volumes have declined significantly during recent sales phases.
Taken together, these factors reflect a lack of momentum and limited confidence on the part of traders. Short-term rebound attempts have proven unsustainable, while selling pressure continues to dominate the overall dynamic.
Technical indicators signal stabilization, not reversal, for SHIB
On the technical side, SHIB found short-term support around $0.000007, a level often dubbed by traders as “the magic of 700”. After several months of decline, price dynamics have slowed down in this area. Candlesticks tightened, with no further downward acceleration, and trading volumes declined, primarily suggesting an easing of selling pressure rather than renewed buying interest.
Analysis of historical charts shows that this price level has already served as a stabilization zone in previous cycles. The phases spent around $0.000007 gave rise to short-term rebounds, without leading to lasting upward trends. As a result, many traders consider this threshold more as a psychological support as a clear signal of reversal.
Signs of seller fatigue also appeared in this area. Large sell orders have become rarer, and on-chain data indicates a decline in transfers of large amounts. When sellers withdraw, prices can stabilize, even in the absence of strong demand. The low liquidity observed during the end-of-year trading periods accentuated this phenomenon, making the price more sensitive to smaller transactions.
Beyond purely technical aspects, the decline in SHIB's capitalization also reflects a progressive disinterest. Meme tokens rely largely on online popularity and community dynamics, two levers that have significantly weakened for Shiba Inu over the past two years. Attempts to expand the ecosystem through the Shibarium network have so far been met with limited adoption, with few active applications and modest growth in users.
Despite this persistent weakness, some analysts believe that a rebound remains possible if general conditions of the crypto market improve. Shiba Inu remains one of the most recognizable digital assets, driven by a large community and a strong brand identity. The ability of this support to translate into sustainable value, however, will depend on a return of demand, increased use of the ecosystem and a more favorable market environment.
Signs of seller fatigue also appeared near this range. Large sell orders have declined and on-chain data shows fewer high-value transfers. When sellers withdraw, prices can stabilize even without high demand. Low liquidity during year-end trading reinforced this effect, making it easier for smaller transactions to influence the price.
Beyond technical signals, the drop in SHIB's capitalization reflects reduced interest. Meme tokens rely heavily on online interest and community momentum, two things that have cooled for Shiba Inu over the past couple of years. Efforts to expand usage across the Shibarium network have seen limited adoption, with few active applications and modest user growth.
Despite the continued weakness, some analysts see a possible recovery if conditions in the broader crypto market improve. Shiba Inu remains one of the most recognizable digital assets, supported by a large community and strong branding. Whether this support can lead to lasting value will depend on renewed demand, increased usage and a more stable market environment.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
