Shiba Inu Price Prediction 2025: Potential Breakthrough?

In the past three months, the price of SHIB has more than doubled, reaching a local high on December 7th before experiencing a slight decrease during the market correction. However, the high volatility of meme coins makes their price fluctuations difficult to predict. SHIB Price History Launched in August 2020 with the nickname 'Dogecoin killer', Shiba Inu has attracted attention thanks to its bold strategy of donating 50% of the supply to Ethereum founder Vitalik Buterin. This token quickly gained fame in 2021, competing with Dogecoin and even reaching a trading volume comparable to Ethereum at its peak. However, the price dropped over 90% thereafter, falling below $0.000008 in 2023.

Despite the difficulties, SHIB has shown signs of recovery. Its price has increased over 220% in recent months, surpassing $0.00003. Although still far from the all-time high in November 2021, the current price is equivalent to the highs of May that year. What is the SHIB Burn Rate? The burn rate of Shiba Inu is an important index in the ecosystem, reflecting the community's optimism towards the SHIB project. Please provide the text to be translated. By reducing the overall supply, this strategy aims to increase scarcity and maintain a positive psychology, which may affect the price of SHIB. With transactions on Shibarium, SHIB is used to pay gas fees, and a portion is burned, contributing to the deflationary mechanism. However, to have a significant impact on the price, larger-scale burn events need to be carried out. The Relationship Between Shiba Inu and Bitcoin The correlation between Shiba Inu (SHIB) and Bitcoin (BTC) is still low. However, altcoins, including SHIB, often react to Bitcoin's price fluctuations, especially during bull markets driven by institutional investment.

However, history shows that the correlation has weakened since the last price increase cycle.

According to data from Ark Invest, since the previous cycle low, the price of Bitcoin has increased by 5.72 times, closely resembling the 5.18x and 5.93x increases in the 2015-2018 and 2018-2022 cycles. If Bitcoin continues the trend of these two cycles, its price could increase by 15.4 times to about $243,000 in the coming year, about 880 days after the bottom of the cycle in November 2021. Altcoins are likely to follow BTC in early 2025. Is altcoin season coming back? Since the beginning of the year, 20 out of the top 50 cryptocurrencies by market capitalization have outperformed Bitcoin's increase. Trading volume in November reached the highest level of the year and futures contracts hit a historical high. Recent data from CryptoQuant shows that altcoin trading volume is not being driven by BTC pairs, suggesting real growth trends rather than capital shifting from Bitcoin to altcoins. However, recent increased volatility has led to significant liquidations, especially in leveraged positions related to SHIB. A wave of liquidations causing $880 million in losses indicates that the deleveraging process is ongoing in the market, continuing to exert downward pressure on assets like SHIB. Layer 2 and collaboration with Chainlink The Shiba Inu ecosystem has taken a significant step by integrating Chainlink's Cross-Chain Interoperability Protocol (CCIP) into the Shibarium network. This collaboration identifies CCIP as the primary cross-chain infrastructure for the ecosystem. This cooperation opens up the potential to expand DeFi applications and strengthens the role of Shiba Inu in the larger blockchain landscape. SHIB developer, Kaal Dhairya, suggested on X that there are still many exciting updates waiting to be released. Integrating Chainlink into Shibarium brings advanced features such as safe cross-chain token transfers and real-time market data access. In the past year, Shiba Inu has made significant progress with its Shibarium, a Layer-2 scaling solution. With the implementation of practical products and staking, the project aims to achieve a significant milestone in the cryptocurrency ecosystem, which could drive prices higher. Can SHIB reach $0.1 by 2025? The short answer is 'no'. The price of SHIB, which reached an ATH of $0.0000667 in October 2021, does not indicate a growth rate of 149,320.59% in this cycle based on market trends and the current burn rate. The trading volume of SHIB is at $2.28 billion, despite a slight decrease, still shows active participation from both whales and retail traders. However, if unable to hold the support level at the EMA 50 line, the price may drop further, with the EMA 200 line at $0.00002044 as a potential stable point. Without recovery from a larger market or new buying incentives, SHIB is at risk of further decline. How much will SHIB be priced in 2025? The Relative Strength Index (RSI) is a simple yet effective tool to identify optimal buying or selling points for Shiba Inu (SHIB) in the medium and long term phases. RSI oscillates between 0 and 100. Typically, a reading above 70 indicates that the asset is in an "overbought" condition, signaling the potential for a downward correction, while a reading below 30 indicates that the asset is in an "oversold" condition, suggesting the potential for a recovery. This makes RSI a crucial indicator for measuring market momentum and optimizing trade timing.

In the rising trend of cryptocurrencies, the RSI of Shiba Inu often stays above 30 and frequently surpasses the 70 threshold, reflecting strong buying momentum. Conversely, in a downtrend, the RSI rarely exceeds 70 and typically decreases to 30 or lower, signaling weak market conditions. Currently, market sentiment indicates that SHIB's nearest target is $0.00003. Achieving this milestone could pave the way for a sustained price increase, pushing to a weekly high of $0.000033.

Notably, the burn rate of Shiba Inu has skyrocketed to 1.068%, resulting in the destruction of over 51.7 million tokens. Additionally, the total value locked (TVL) of Shibarium has increased by 850% since September, reflecting the growing activity within the ecosystem.

Despite recent challenges, 64% of SHIB investors are still profitable, demonstrating the resilience of the community and the strong position of Shiba Inu in the meme coin space. On a larger time frame, the weekly chart shows the potential for price increase in 2025. With the December correction behind us, SHIB has a great opportunity to reclaim the $0.0000300 level in the first quarter of 2025.