Why did the price of SHIB fall?

Shiba Inu (SHIB) dropped 2.2% in the last 24 hours, continuing a 13% decline over the past month. The main reasons are:

1. Low holiday trading activity – Overall crypto trading volume fell 23%, causing bigger price swings.
2. Technical weakness – SHIB is trading below important moving averages, showing weak momentum.
3. Market focus on Bitcoin – Bitcoin’s dominance rose to 59%, pulling investment away from altcoins like SHIB.

1. Holiday Trading Slowdown (Negative Impact)

What happened: From December 31 to January 1, crypto spot trading volume dropped 23.48%. SHIB’s 24-hour trading volume fell 30%, even though futures trading saw a small increase. Low trading activity during holidays usually leads to more volatile prices.
Why it matters: With fewer traders active, SHIB is more prone to sharp price changes. Even with $104 million traded in 24 hours, compared to its $4 billion market value, this isn’t enough to keep prices steady.

2. Technical Weakness (Bearish Signs)

What happened: SHIB is trading below its 7-day simple moving average (SMA) of $0.00000716 and 30-day SMA of $0.00000781. The Relative Strength Index (RSI) at 34.6 indicates selling pressure but not yet oversold conditions.
Why it matters: As long as SHIB stays below $0.00000716, sellers have the upper hand. Support levels suggest the next key price point is around $0.00000683, which was the low in 2025.

3. Bitcoin Dominance Increases (Mixed Impact)

What happened: Bitcoin’s share of the crypto market rose to 59%, up 0.23% in 24 hours, as investors moved toward safer assets amid cautious market sentiment (Fear & Greed Index at 31).
Why it matters: Meme coins like SHIB often lag when Bitcoin leads the market. However, SHIB’s turnover ratio of 0.0257 shows there is still some trading activity that could pick up if market sentiment improves.

Conclusion

SHIB’s recent decline is due to low holiday trading, technical resistance, and a market favoring Bitcoin. Although a large amount of SHIB was withdrawn from exchanges on December 31 (167 billion tokens), indicating some accumulation, buyers aren’t strongly confident yet. Key point to watch: Can SHIB hold the $0.00000683 support level? Falling below this could lead to faster losses.

What could affect the price of SHIB?

Shiba Inu’s price is caught between hopes for a comeback and ongoing market challenges.

1. Shibarium’s Recovery Plan – $4 million recovered from a security breach using NFTs and stronger protections (mixed results).
2. Whale Activity – Over 167 billion SHIB tokens moved off exchanges, suggesting less selling pressure (positive sign).
3. Market Mood – Crypto fear index is low (31/100) and Bitcoin controls nearly 59% of the market, which puts pressure on smaller coins like SHIB (negative sign).

Deep Dive

1. Shibarium’s Security Fixes (Mixed Results)

What happened:
In September 2025, Shibarium faced a $4 million hack. To make things right, the Shiba Inu team created “Shib Owes You” NFTs to compensate affected users and improved security measures on the platform. The Plasma Bridge, a key part of Shibarium, is back online. However, some leaders have left the project, and federal investigations have raised concerns.

What this means for you:
Technically, Shibarium’s fixes could help stabilize its use and value. But trust issues and regulatory attention might slow down how quickly people start using it again. The NFTs provide a clear way to repay users, but their success depends on how well Shibarium’s projects manage their money going forward.

2. Whale Buying vs. Weak Price Signals (Mixed Outlook)

What happened:
On December 31, 2025, a huge amount—204 billion SHIB tokens—left exchanges, the biggest daily move since 2023. This means fewer tokens are available to sell, which is usually good. But the price is still below key moving averages (short-term average is $0.00000716), and the Relative Strength Index (RSI), a measure of momentum, is near oversold at 34.61.

What this means for you:
Big holders (whales) moving SHIB off exchanges often signal they’re accumulating, which can lead to price increases. However, SHIB’s price has dropped 45% in the last three months, and Shibarium’s transaction volume has fallen 82% since October, showing weak demand. For the price to turn around, it needs to break above $0.00000746, a key resistance level.

3. Overall Market Mood & Meme Coin Risks (Negative Pressure)

What happened:
The crypto fear and greed index is at 31, indicating fear in the market. Bitcoin dominance is nearly 59%, meaning Bitcoin holds most of the market’s value. This environment usually means less money flows into smaller, riskier coins like SHIB. SHIB’s price has dropped 45% over the past 90 days, reflecting this trend.

What this means for you:
Meme coins like SHIB rely heavily on excitement from everyday investors, which is low right now. Until Bitcoin’s market share drops below 55% or SHIB’s social media activity picks up (it’s down 62% since November), the price is unlikely to rise significantly.

Conclusion

SHIB’s future depends on Shibarium’s recovery, big investors’ actions, and changes in overall market sentiment. While the move of tokens off exchanges and compensation efforts are positive signs, technical challenges and cautious market conditions remain obstacles. Will SHIB’s community-driven approach help it overcome this tough period for altcoins? Keep an eye on Shibarium’s daily activity and Bitcoin’s market dominance for clues.

What are people saying about SHIB?

The Shiba Inu community swings between hopeful excitement and cautious reality checks. Here’s what’s making waves right now:

1. Bullish outlook – Some experts are targeting prices between $0.00001019 and $0.000045.
2. Bearish concerns – Large holders selling off and risks of price drops are on the radar.
3. Technical battle – Conflicting signals like double bottom patterns versus downward price channels.

In-Depth Look

1. @CaptainAltcoin_: Forecast of a 1,150% rally (bullish)

"Shiba Inu Price Prediction: Expert Predicts a 1,150% $SHIB Rally"
– @CaptainAltcoin (1.1K followers · 12.3K posts · 2025-12-31 07:52 UTC)
[See original post](https://x.com/CaptainAltcoin/status/2006272269497110948)
What this means: This very optimistic prediction depends on SHIB breaking through a key resistance level at $0.00001019. However, it doesn’t mention specific reasons beyond chart patterns to support this surge.

2. @johnmorganFL: Decline in new investors (bearish)

"Shiba Inu Price Prediction: $SHIB Drops Amid Slowing New Investor Interest"
– @johnmorganFL (35K followers · 558K posts · 2025-08-03 11:27 UTC)
See original post
What this means: Negative pressure might grow if SHIB’s price continues to drop (down 13.27% over 30 days) and trading volume falls (down 45% over 90 days), signaling less interest from everyday investors.

3. @CryptoJoeReal: Double bottom pattern spotted (bullish)

"#ShibaInu has a Double Bottom chart pattern... Price Target: $0.00000834"
– @CryptoJoeReal (5.3K followers · 43.3K posts · 2025-12-29 19:05 UTC)
See original post
What this means: A short-term chart pattern suggests SHIB could rise about 20% if it stays above $0.00000720. But this view conflicts with longer-term signals that point to downward trends.

Conclusion

Opinions on Shiba Inu are mixed, caught between hopeful hype and cautious technical analysis. Some experts point to positive signs like strong buying by big holders and favorable chart patterns, while others warn about falling trading volumes and failed price breakouts. Keep an eye on the $0.00001019 resistance level — if SHIB breaks above it and holds, it could support bullish predictions. If it fails, the price may stay in a sideways range for a while.

What is the latest news about SHIB?

Shiba Inu wraps up 2025 with plans to make things right after a security breach and a big move of coins off exchanges, showing a mix of challenges and cautious hope. Here’s the latest:

1. Final 2025 Move: SOU NFTs Launch (December 31, 2025) – These NFTs will help repay victims of a $4 million hack by giving them claim tokens they can trade.
2. 204 Billion SHIB Leave Exchanges (December 31, 2025) – The biggest single-day withdrawal of SHIB since mid-December, suggesting people are holding onto their coins.
3. Shibarium Recovery & Decentralization (December 31, 2025) – The Shibarium bridge is back online with stronger security after the $4 million hack.

Deep Dive

1. Final 2025 Move: SOU NFTs Launch (December 31, 2025)

Overview:
The Shiba Inu team introduced “Shib Owes You” (SOU) NFTs to compensate users affected by the $4 million hack on the Shibarium bridge in September. Each NFT shows how much is owed and updates as repayments happen. The project also requires ecosystem partners to share revenue to help fund these repayments.

What this means:
This is cautiously positive for SHIB. It shows the team is trying to fix trust issues caused by the hack. However, the plan depends on ongoing revenue from the ecosystem, which could be a challenge if adoption slows. The transparency may encourage some optimism. (Bitcoinist)

2. 204 Billion SHIB Leave Exchanges (December 31, 2025)

Overview:
Data shows 204 billion SHIB tokens, worth about $1.4 million, were withdrawn from exchanges on December 31. This is the largest daily outflow in weeks and follows a 167 billion SHIB withdrawal earlier in the month, reducing the amount available to sell.

What this means:
This is a positive sign in the short term. With fewer SHIB tokens on exchanges, holders seem to be moving their coins to personal wallets, possibly preparing for future moves in 2026. Still, SHIB’s price remains 68% below its 2025 high, indicating ongoing challenges. (CoinMarketCap)

3. Shibarium Recovery & Decentralization (December 31, 2025)

Overview:
The Shibarium Plasma Bridge has resumed operations with stronger security measures after the $4 million hack. The bridge is now less dependent on validators, and federal investigators are involved. The core team has also shrunk after some leaders left.

What this means:
This is neutral news. While the technical issues are fixed, daily transactions on Shibarium are still 82% lower than in October. Efforts to make the system more decentralized could help in the long run but don’t offer immediate benefits. (Bitcoinist)

Conclusion

As Shiba Inu moves into 2026, the focus is on rebuilding trust through SOU NFTs and fixing Shibarium, even as the market remains bearish. The large withdrawal of SHIB from exchanges suggests some investors are holding on, but the coin needs steady growth in real-world use to bounce back from a 45% drop over the past 90 days. Will upcoming privacy upgrades to Shibarium spark new developer interest, or will interest in meme coins continue to fade?

What is expected in the development of SHIB?

Shiba Inu’s 2026 roadmap centers on growing its ecosystem, adding AI features, and improving how the community governs the project.

1. Shibarium RPC Migration (Early 2026) – Making the network more decentralized and secure after a recent security review.
2. AI Technical Paper Release (Q1 2026) – Sharing details about partnerships with NVIDIA and Alibaba Cloud to bring AI tools to Shibarium.
3. Shib Alpha Layer Rollout (Mid-2026) – Launching a new technology layer to speed up transactions and lower costs.
4. SHIB DAO Elections (2026) – Moving toward community-led decision-making with new elections for leadership roles.

Deep Dive

1. Shibarium RPC Migration (Early 2026)

Overview: After a security issue in September 2025 involving Shibarium’s bridge, the team is shifting to a decentralized RPC (Remote Procedure Call) network. This change helps prevent single points of failure by spreading out network control. They’re also blocking harmful addresses and adding a 7-day delay on withdrawals to boost security.
What this means: This is a positive step for SHIB’s long-term trustworthiness, as stronger security can attract and keep investors. However, there might be delays before the network’s full features are back online.

2. AI Technical Paper Release (Q1 2026)

Overview: Shytoshi Kusama, a key developer, confirmed plans to release a technical paper explaining how Shiba Inu is working with NVIDIA and Alibaba Cloud to integrate AI tools directly into Shibarium (U.Today).
What this means: This could increase SHIB’s usefulness beyond just being a meme coin, which is a good sign. Still, there’s some risk since the project is new to AI and will need to prove it can deliver.

3. Shib Alpha Layer Rollout (Mid-2026)

Overview: The team is preparing to launch a Layer-3 solution called Shib Alpha, which builds on Shibarium. This technology aims to make transactions faster, allow users to pay fees in multiple currencies, and improve privacy.
What this means: If successful, this could make Shiba Inu more attractive to users by lowering costs and speeding up transactions. But technical challenges could cause delays or split the community’s resources.

4. SHIB DAO Elections (2026)

Overview: Following governance disagreements in August 2025, Shiba Inu plans to hold elections for a “lead visionary” and council members. This will give the community more power to propose and vote on changes (Bitcoinist).
What this means: This is a positive move toward decentralization, but there’s a chance that low voter turnout or disagreements could slow decision-making, especially with over 1.5 million token holders.

Conclusion

Shiba Inu’s 2026 plans focus on improving security, adding AI-driven features, and strengthening community governance. While these goals are ambitious, their success depends on smooth execution during a challenging market environment. The big question is whether SHIB can evolve from a meme coin into a serious tech project that attracts institutional investors, or if it will continue to experience high volatility.

{{technical_analysis_coin_candle_chart}}

What updates are there in the SHIB code base?

Shiba Inu’s technology has received important updates to improve security, decentralization, and how well its ecosystem works together.

1. RPC Migration (November 2, 2025) – Shibarium’s network infrastructure was revamped to remove single points of failure.
2. LEASH v2 Upgrade (August 25, 2025) – The LEASH token was updated with a fixed supply and a new burn-to-claim system to prevent exploits.
3. Post-Breach Security Patch (September 22, 2025) – After a security breach, new multi-signature controls and key rotations were implemented to strengthen defenses.

Deep Dive

1. RPC Migration (November 2, 2025)

What happened: Shibarium’s RPC, which is the part of the network that handles communication, moved from centralized servers managed by companies like AWS and Google Cloud to a decentralized network of nodes.

This means Shibarium no longer depends on a few big providers, making the system more reliable and secure. Validator keys were also rotated, and now withdrawals require approval from 6 out of 9 authorized parties, adding an extra layer of security.

Why it matters: This upgrade makes the network stronger against outages and attacks, which could encourage more developers to build on Shibarium. (Source)

2. LEASH v2 Upgrade (August 25, 2025)

What happened: The LEASH token’s smart contract was rewritten to fix a bug that could have allowed unlimited token creation.

The new version sets a fixed supply of 107,646 LEASH tokens (slightly higher than before) and requires users to burn their old tokens to claim the new ones. An external security audit confirmed the fix, and a testnet and bug bounty program were run before the update.

Why it matters: This fix is important for LEASH token holders but doesn’t directly affect Shiba Inu (SHIB) itself. (Source)

3. Post-Breach Security Patch (September 22, 2025)

What happened: After hackers exploited validator keys to steal $4 million from Shibarium’s bridge, several security improvements were made.

These include real-time monitoring for threats, tighter access controls on AWS key management, and a blocklist for suspicious addresses. Bridge operations are paused until thorough audits confirm the system is secure.

Why it matters: While the pause in bridge activity is a short-term setback, these measures are critical for rebuilding trust and making Shibarium more secure in the long run. (Source)

Conclusion

Shiba Inu’s technology is evolving with a clear focus on decentralization, fixing token issues, and strengthening security after incidents. Although recent breaches have challenged confidence, these proactive upgrades show a commitment to building a robust, enterprise-level platform. The big question is whether Shibarium’s improved security will lead to faster adoption in 2026.