SHIB Price Prediction: Is It a Good Investment After the 70% Crash?

#SHIB

• Oversold Technicals vs. Bearish Trend: SHIB shows potential oversold signals (positive MACD, lower Bollinger Band) but remains in a clear downtrend below its key moving average, creating a conflict between momentum indicators and price action.
• Extreme Fear as a Contrarian Signal: Overwhelmingly negative headlines highlighting massive crashes have likely pushed market sentiment to a fearful extreme, which historically can sometimes precede a sentiment reversal or stabilization.
• The Binary Catalyst of Supply Reduction: The proposed 100 trillion SHIB coin burn represents a high-stakes, binary event. Its credible execution could fundamentally improve the token's economics, while failure or ambiguity could prolong the bearish sentiment.

SHIB Price Prediction

Technical Analysis: SHIB/USDT

According to technical data for SHIB/USDT as of December 26, 2025, the token is trading at 0.00000718 USDT, which is below its 20-day moving average of 0.00000779. This positioning suggests the asset is in a short-term downtrend relative to its recent average price.

The MACD indicator shows a reading of 0.00000068 for the MACD line and 0.00000047 for the signal line, resulting in a positive histogram of 0.00000021. 'This positive divergence, where the MACD line is above the signal line, can sometimes indicate waning selling pressure or a potential momentum shift, even as the price remains under pressure,' says BTCC financial analyst Mia.

SHIB is currently trading near the lower Bollinger Band at 0.00000663, with the middle band at 0.00000779 and the upper band at 0.00000894. 'Trading near the lower band often signals an oversold condition in traditional technical analysis. However, in volatile crypto markets, this can also precede further declines if broader sentiment doesn't improve,' Mia notes. The key technical level to watch for a potential reversal would be a sustained break back above the 20-day MA.

Market Sentiment & Catalysts

Recent headlines surrounding shiba inu paint a picture of extreme fear and significant price depreciation, with mentions of a '70% crash' and a '66% price decrease year-over-year.' This overwhelmingly negative news flow is a primary driver of the current bearish sentiment.

'Headlines focusing on massive percentage declines often cement fear in the market, potentially leading to capitulation selling,' says BTCC financial analyst Mia. 'However, for contrarian investors, such pervasive negativity can sometimes mark emotional extremes that precede a stabilization or relief rally, provided a catalyst emerges.'

The potential catalyst mentioned is a '100 Trillion Coin Burn.' Mia adds, 'While the mechanics and certainty of such a burn are critical, the concept alone can shift sentiment. A significant, verifiable reduction in token supply is a fundamental bullish factor, as it increases scarcity. The market's reaction will depend entirely on the credibility and scale of the proposed action.' Current sentiment, as reflected in the news, remains deeply negative but is watching for a fundamental shift via the burn narrative.

Factors Influencing SHIB’s Price

Shiba Inu: Potential Price Impact of a 100 Trillion Coin Burn

Shiba Inu's (SHIB) 2021 rally was significantly fueled by Vitalik Buterin's unprecedented token burn, where 90% of his holdings were destroyed. This supply shock propelled SHIB's price by millions of percentage points. Now, speculation arises about the effects of another massive burn—this time, 100 trillion coins.

With 589 trillion SHIB currently circulating, a 100 trillion burn at today's $4.24 billion market cap WOULD theoretically boost the price to $0.00000867, a 20% increase. Should the market cap rise to $10 billion beforehand, the same burn could send SHIB soaring 184% to $0.0000204, more than doubling investor returns.

While the SHIB community eagerly anticipates such supply shocks, the likelihood remains uncertain. Market dynamics suggest that significant burns, coupled with growing demand, could replicate 2021's explosive gains—but execution and timing are everything.

Shiba Inu’s 70% Crash: A Contrarian Opportunity Amid Market Turmoil

Shiba Inu (SHIB) has plummeted nearly 70% since its December 2024 peak of $0.00003284, with weekly losses exceeding 10%. The memecoin’s brutal downturn reflects broader macroeconomic pressures driving investors away from risk assets. Yet buried in the wreckage lies a speculative proposition: a 368% return if SHIB reclaims its December high, or an 11-fold surge should it retest its all-time high of $0.00008616.

Such projections hinge on a precarious bet. SHIB’s lack of fundamental utility and reliance on retail sentiment RENDER it vulnerable in prolonged bear markets. The token’s fate remains tethered to crypto’s macro recovery—potentially in 2026, when monetary conditions may ease. For now, it serves as a stark reminder of memecoin volatility, where catastrophic losses and parabolic rallies are two sides of the same speculative coin.

Shiba Inu Price Prediction: Fear Grips Traders As SHIB Posts 66% Price Decrease YoY

Shiba Inu (SHIB) holders face mounting panic as the token's value plunges 66% year-over-year, with technical indicators signaling further decline. The memecoin now trades at $0.00000706, breaking critical support levels that held since 2023.

A weekly death cross formation—the first in SHIB's history—confirms bearish momentum. Investors openly voice frustration on social media, with one longtime holder publicly appealing to founder Shytoshi Kusama: "shib is going down and we are losing money."

The descending trendline from 2024 highs continues to cap recovery attempts, leaving the community questioning whether the dog-themed token can escape its downward channel.

Is SHIB a good investment?

Based on the provided technical and sentiment data, SHIB presents a high-risk, high-potential-reward scenario typical of meme coins, rather than a clear-cut 'good' or 'bad' investment. The decision hinges heavily on risk tolerance and investment horizon.

For Short-Term Traders: The environment is challenging. Price is below key moving averages, and fear dominates the headlines. However, technical indicators like the positive MACD divergence and proximity to the lower Bollinger Band suggest the sell-off may be overextended. A tradeable bounce could occur, especially if the 'coin burn' news develops positively, but this is speculative. The risk of further decline remains high.

For Long-Term Investors: The massive year-over-year decline has significantly lowered the entry price. The proposed 100 trillion coin burn is the critical variable. If executed credibly, it could alter the token's supply-demand dynamics fundamentally. However, this is a binary event—its impact is uncertain until it happens.

Key Data Summary:

In conclusion, 'SHIB is not an investment for the faint of heart,' states BTCC financial analyst Mia. 'It's a speculative asset whose near-term fate is tied to technical rebounds and sentiment shifts from news like the burn. Any investment should be sized appropriately, understanding that volatility remains extreme. A prudent approach would be to wait for confirmation of a trend change, such as a reclaim of the 20-day MA, alongside concrete progress on the supply reduction plan.'