- Shiba Inu price fell as low as $0.000022 on Wednesday, reflecting a 16% loss in the weekly time frame.
- Shiba Inu-funded wallets hit a new all-time high of 1.38 million, with over 100,000 new market entrants added in 2024.
- The SHIB 4-hour chart shows a deadly cross formation, indicating further downside risks.
Shiba Inu price fell as low as $0.000022 on Wednesday, marking a 13.4% loss in the weekly time frame. Despite Ethereum’s lackluster performance in 2024, on-chain data shows that SHIB continues to attract new buyers. Is SHIB poised for a quick rebound?
SHIB price plunges towards $0.000020 support as crypto crash enters second day
Shiba Inu (SHIB) price saw strong downward momentum this week, falling 13.4% to $0.000022 on Wednesday.
SHIB’s bearish performance reflects other mega-cap assets such as BTC, ETH And XRPall recording considerable losses on the day.
This drop marks a strong correction over the weekly period, reflecting the downward pressure which has persisted since the start of the month.
The downward trend appears to be driven by hawkish expectations of the UNITED STATES (United States) Federal Reserve (Fed), which pushed traders to reduce their exposure to high-risk assets, including memecoins like SHIB.
Known for their low liquidity and sensitivity to changes in market sentimentmemecoins have seen their demand decline amid the cautious tone of the market as a whole.
Shiba Inu 4-hour price action, January 8 | Trading View
SHIB’s attempt to stabilize around $0.000023 on Monday failed as sellers intensified midweek, pushing prices closer to the critical support level of $0.000020 at the time of writing on Wednesday .
The price action suggests a consolidation phase near $0.000020, with volatility expected to persist in the near term.
Shiba Inu sets new record of 1.38 million wallets funded amid market turmoil
Despite the recent downturn in the crypto market, Shiba Inu continues to attract a growing number of investors.
IntoTheBlock’s Funded Wallets metric represents unique addresses holding a balance greater than zero, providing insight into overall adoption and investor interest in a cryptocurrency.
Shiba Inu Funded Wallets vs. SHIB Price | Source: In the block
The total number of funded wallets holding SHIB has reached an all-time high of 1.38 million, with over 100,000 new wallets added in 2024 alone.
This shows that the Shiba Inu ecosystem continues to attract new investors.
Beyond that, the network’s record growth reaffirms the Shiba Inu’s global appeal, despite the fact that Solana memes have dominated media trends in recent months.
However, bearish sentiment continues to prevail as traders prepare for tighter monetary policy in 2025.
Therefore, SHIB’s increased wallet adoption may not translate into an immediate price recovery in the near term.
Instead, it reflects speculative bets on SHIB’s long-term potential.
Shiba Inu Price Forecast: New Buyers Could Prevent $0.000020 Breakdown
Shiba Inu is facing significant downward pressure after a sharp 16% decline over the past 24 hours.
Technical indicators on the SHIBUSD 4-hour chart are signaling significant downside risks, with bears capitalizing on a “death cross” signal between the 50- and 200-day simple moving averages on the 4-hour chart.
This bearish crossover highlights the dominance of sellers, who could push prices towards the critical support of $0.000020, or even as high as $0.000015 if the current market weakness continues.
Shiba Inu Price Forecast | SHIBUSD
Meanwhile, the volume-weighted average price (VWAP) at $0.000021 indicates that the bulls are attempting to establish a short-term floor above this level.
A sustained recovery above the VWAP could push SHIB towards the next resistance at $0.000023, where the 50-day SMA lies.
However, this scenario relies on a broader market rebound and increased accumulation volume to invalidate the bearish narrative.