Shiba Inu Token: Reasons for the Drop in SHIB Prices and Future Prospects

Bittime - Shiba Inu Token (SHIB) experienced a significant price decline. Check out the causes of falling prices, technical analysis, spike in burn rates, and future prospects here.

Shiba Inu Token (SHIB) Price Plummets

The price of Shiba Inu Token (SHIB) has experienced quite a sharp correction since December 5 2025. After rising in the previous few weeks, the SHIB price is now experiencing pressure again. 

This movement attracted the attention of investors, especially because it occurred amidst great activity from whale investors as well as a drastic spike in the SHIB token burn rate.

Currently, SHIB is trading at $0.00001592 (around IDR 0.25), experiencing an increase of around 10% in the last week. 

However, before that, the price of SHIB had fallen quite significantly due to a massive selling action. What really happened? Let's discuss it in more depth.

Read also: Can Shiba Inu (SHIB) Price Break $1 by 2025?

Causes of SHIB Price Dropping

There are several reasons why SHIB prices fell. The following are the factors you need to know:

1. Big Sell-Off by Whale Investors

Source: MSN

One of the main factors behind the drop in SHIB prices was the large selling action carried out by whale investors. Recently, a wallet with the address “0xB768” withdrew 144.29 billion SHIB from Coinbase, worth around $2.39 million (around IDR 38.7 billion). 

Fund movements of this magnitude often create panic in the market, causing greater selling pressure.

2. Negative Market Sentiment

The crypto market as a whole is experiencing uncertainty, with many investors choosing to withdraw their funds to more stable assets. 

Regulatory uncertainty and Bitcoin price fluctuations also influence SHIB price movements.

3. Technical Pressure and Price Correction

From a technical perspective, the SHIB price experienced a correction after experiencing a sharp increase in the last few weeks. A strong resistance level kept SHIB price on hold, triggering further selling.

Read also: Owners of 100 Million SHIB will automatically become rich if the price of Shiba Inu tokens rises this much

SHIB Price Technical Analysis

From a technical perspective, SHIB price is currently showing some signs of recovery. Some important indicators to pay attention to include:

Breakout of a Downtrend: SHIB has managed to break the descending trend line that has been limiting its movement. This indicates that selling pressure is starting to subside.

Moving Average (MA): SHIB price has crossed the 9-day MA and is testing the 21-day MA. If SHIB manages to stay above this level, there is a possibility that the bullish trend will continue.

MACD (Moving Average Convergence Divergence): The MACD indicator shows a bullish crossover, indicating bearish momentum is starting to weaken.

RSI (Relative Strength Index): SHIB's RSI is currently at 44, indicating an increase in buying interest after previously being in the oversold zone.

Shiba Inu Burn Rises Sharply and Future Prospects

One factor that gives hope to SHIB investors is the extraordinary spike in burn rates. On February 14, 2025, SHIB's burn rate increased by 2000%, with a total of 410.74 trillion tokens having been removed from circulation since the burn program began.

Over the past week alone, 58.28 million SHIB have been burned, while in the last month the total burn reached 98.85 million SHIB. 

This increase in burn is expected to reduce the supply of tokens in the market, potentially increasing the price of SHIB in the long term, if demand remains or increases.

The SHIB community has also become increasingly active in supporting the burn program, demonstrating a commitment to increasing the value of the token in the long term.

Read also: Get ready, Shiba Inu (SHIB) is predicted to break out in the near future

FAQ

1. Why did the price of Shiba Inu (SHIB) fall sharply?

SHIB price fell due to a large sell-off by whale investors, crypto market uncertainty, and a technical correction after the previous increase.

2. Can the SHIB price rise again?

The potential remains, especially with surging burn rates and strong community support. However, price movements still depend on market factors and investor sentiment.

3. What is burn rate in SHIB?

Burn rate is the process of removing tokens from circulation by sending them to an address that cannot be used again. This aims to reduce supply and increase the value of the token.

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Reference 

coinmarketcap, Shiba Inu Coinmarketcap, accessed February 17, 2025.

MSN, Shiba Inu bottoms as whales withdraw billions and burn rate skyrockets, accessed February 17, 2025.

Author: Y