Key Insights
- Shiba Inu price has crashed to its lowest level since 2023.
- The coin has formed a falling wedge pattern on the daily chart.
- The supply of SHIB tokens in exchanges has dropped recently.
Shiba Inu price has nosedived this year as demand for meme coins eased and as whales and smart money investors dumped. SHIB token has dropped to $0.0000074, its lowest level since October 2023. It has declined by ~84% from its peak in 2024. This article explains why it may rebound in 2026.
Shiba Inu Price Technicals Suggest a Rebound is Possible
The daily timeframe chart indicates that the SHIB token has experienced a freefall over the last two years. While trend indicators, such as moving averages and Supertrend, point to further downside, there are signs that a rebound may occur soon.
One of the main bullish catalysts is that the token has formed a falling wedge pattern, a popular bullish reversal sign. This pattern, shown in green below, consists of two descending and converging trendlines, with a bullish breakout occurring when these two lines are about to converge.
A closer look at the two lines reveals that they are about to converge, which may lead to a strong bullish breakout in the coming weeks.
The price target in a falling wedge pattern is estimated by first measuring the widest section of the wedge and then measuring the same distance from the breakout point. In this case, the widest part is approximately a 32% dip, and measuring the same distance from the breakout point yields a target price of $0.00001084.
There are other potential technical catalysts for the coin, including the fact that it has become highly oversold. The Stochastic Oscillator has dropped to the lowest level this year. Also, the Relative Strength Index (RSI) is nearing the oversold level this year.
Therefore, there is a likelihood that the token will rebound, potentially to the falling wedge pattern target at $0.00001085.
However, a drop below the lower side of the wedge at $0.00000692 will invalidate the bullish outlook.
Whales Have Started Buying SHIB Coins
Another reason why the Shiba Inu Coin price may rebound in the coming year is that whales have started buying the coin, a sign that they believe it will soon start to rebound.
Data compiled by Nansen shows that whales have increased their holdings by a substantial 62% over the last 30 days, to 96.8 billion tokens. Their holdings has jumped from less than 2 billion this month.
Smart money investors have also continued to boost their holdings over the past few weeks, with their positions reaching over $ 6.02 billion. Their holdings is important since these investors are known for buying low and selling high.
SHIB Supply in Exchanges Has Plunged
The other main reason why the Shiba Inu price may rebound soon is that the supply of tokens in exchanges has been in a strong downward trend in the past few weeks.
As the chart below shows, there are now 289.37 trillion tokens in exchanges, down from the 367.91 trillion earlier this month.
A significant decline in supply exchanges means that investors are not selling their tokens. It also means that holders are not capitulating and selling their positions. Instead, these investors are moving the tokens from exchanges to self-custody, a sign that they expect it to rebound over time.
Macro Factors May Boost Shiba Inu Coin
Ultimately, several key macroeconomic factors are likely to have a bullish impact on the coin.
One of the main macro catalysts is that the Federal Reserve will continue cutting interest rates in the coming weeks.
The bank has already slashed rates by 75 basis points and even started implementing a quantitative easing (QE) policy. Historically, cryptocurrencies, especially meme coins, thrive when the bank adopts a dovish tone.
Additionally, there is a likelihood that inflation will continue to move downwards in the coming year, now that the crude oil price has dropped below the key support level at $60. Falling inflation and a worsening labor market are signs that the bank will cut rates.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
