13 January 2025
Shiba Inu (SHIB) Goes Through 65 Percent Rally Amid Growing Number of Long Term Holders
Over the past 3 months, Shiba Inu (SHIB) has gone through a remarkable 65% price surge. Once considered a meme coin with limited real-world utility, SHIB has consistently defied expectations, demonstrating its ability to generate substantial market momentum. This latest rally reflects not only strong retail interest but also increasing attention from institutional players, highlighting SHIB’s growing footprint in the crypto space.
However, as with many explosive rallies, SHIB's rapid ascent has been met with a notable correction, pulling the price back to a critical support level at $0.00001576 SHIB/USDT on Gate.io. This pullback has raised questions about the token’s ability to sustain its upward trajectory, particularly as it coincides with heightened activity among long-term holders (LTHs), a group often seen as the backbone of market stability. Their actions over the past 24 hours reveal shifting sentiment that could play a pivotal role in shaping SHIB’s immediate future.
The broader crypto market’s volatile nature, combined with SHIB’s meteoric rise and subsequent correction, underscores the complexity of its price dynamics. By examining key metrics like "age consumed" and active deposit activity, this article delves into the implications of LTH behavior, investor sentiment, and critical price levels that could determine whether Shiba Inu’s rally marks the start of a larger trend or a short-lived surge.
Shiba Inu Holders Show Signs of Unease
In the past day, Shiba Inu’s "age consumed" metric—a measure that tracks the movement of long-held tokens—has spiked to levels unseen since March. This surge reflects the largest shift of LTH-held SHIB tokens in over eight months. LTHs, who often serve as a stabilizing force for an asset, appear to be re-evaluating their positions amid recent price fluctuations.
Such heightened activity from LTHs often indicates uncertainty, with some opting to liquidate their holdings. Historically, this behavior is viewed as a bearish signal, suggesting waning confidence in the token’s near-term prospects.
Conversely, data on active deposits—tracking unique wallet addresses moving SHIB to exchanges—has shown a significant decline. After a notable surge earlier this week, active deposits have cooled, implying that fewer holders are rushing to offload their positions. This could signal a more cautious approach, with investors waiting for clearer market signals or improved conditions.
While fewer active deposits may reduce immediate selling pressure, the broader sentiment remains cautious. The market appears to be at a crossroads, with both bullish and bearish scenarios unfolding simultaneously.
SHIB Price Outlook: Navigating Key Levels
At the time of writing, SHIB is currently trading at $0.000015868 SHIB/USDT, marking a 13% decline in the past 24 hours. This pullback has erased a substantial portion of its recent gains, leaving traders and investors on edge. Encouragingly, SHIB has managed to find stability around a crucial support level at $0.00002267. If this level holds, it could pave the way for a recovery, with the next significant resistance target situated at $0.00002976. Breaking above this resistance would reignite bullish momentum and potentially restore investor confidence.
However, failure to sustain the $0.00002267 support could spell trouble for SHIB. A drop below this level might lead to further declines, potentially testing $0.00002093 or lower. Such a move would signal an extended period of consolidation or even a bearish trend, particularly if selling pressure from LTHs persists.
As in 2025, various forecasts attempt to project SHIB price potential trajectory, considering factors such as market trends, technological developments, and broader economic conditions. According to Changelly, a cryptocurrency exchange platform, SHIB's price in 2025 is anticipated to range between a minimum of $0.0000149 and a maximum of $0.0000247, with an average trading value around $0.0000345. This projection suggests a potential return on investment of approximately 23.5% from current price levels. Many people want to buy SHIB when the price is low but don’t know how to trade. You can directly visit Gate.io’s “How to Buy SHIB” page to find out. The clear purchase steps and simple operations help novices easily purchase SHIB tokens.
CoinCodex, another crypto analytics platform, offers a more optimistic outlook, predicting that SHIB could reach a maximum price of $0.00007907 by 2025. This forecast indicates a substantial increase, reflecting confidence in SHIB's growth potential over the next year.
SHIB and its Competitors
Shiba Inu (SHIB) has established itself as one of the leading meme coins in the cryptocurrency market, but it faces fierce competition from other tokens that cater to similar audiences or leverage comparable strategies. Among its primary competitors is Dogecoin (DOGE), the original meme cryptocurrency that inspired the creation of SHIB. Dogecoin boasts a robust community and early mover advantage, maintaining a strong foothold as a widely recognized digital asset. Its continued relevance is supported by high-profile endorsements, such as those from Elon Musk, and its adoption as a payment method by select businesses. SHIB’s efforts to differentiate itself through an ecosystem that includes decentralized finance (DeFi) platforms and NFTs have intensified the rivalry between the two.
Another significant competitor is Floki Inu (FLOKI), a meme coin that gained traction by branding itself as the "people's cryptocurrency." FLOKI differentiates itself by combining meme appeal with tangible utility, offering projects like FlokiFi, a suite of decentralized finance tools, and Valhalla, a play-to-earn gaming metaverse. These initiatives directly compete with Shiba Inu's ShibaSwap and Shibarium ecosystem, targeting users who value both entertainment and functionality in their investments. Floki Inu's growing ecosystem and aggressive marketing strategies, including global advertising campaigns, pose a notable challenge to Shiba Inu’s dominance.
Beyond meme coins, Shiba Inu also contends with broader altcoins such as Baby Doge Coin and SafeMoon, which cater to retail investors seeking high-risk, high-reward opportunities. These projects often rely on community-driven marketing and the promise of future utility to attract users. Although their ecosystems are less developed than SHIB’s, their viral appeal and innovative tokenomics have helped them carve out niches in the market.
Final Thoughts
Shiba Inu’s recent rally showcased its potential for explosive growth, but the subsequent correction highlights the market's inherent volatility. The behavior of long-term holders and the fluctuations in active deposits provide critical insights into investor sentiment. For SHIB to regain its upward momentum, it must hold key support levels while fostering renewed confidence among its core investor base. Until then, the market remains in a delicate balance between optimism and caution.