Shiba Inu’s Price Recovery Amid ETF Speculation
The cryptocurrency market is buzzing with renewed speculation around Shiba Inu (SHIB) as institutional interest swells, notably following T. Rowe Price’s proposal for a $1.6 trillion active crypto ETF. However, concerns about its long-term prospects persist due to declining network activity and whale dynamics.
- The price of Shiba Inu is surging amid ETF speculation and whale accumulation.
- However, activity on the Shibarium platform has plummeted by 82%, undermining token utility and burn mechanisms.
- The critical support level at $0.0000095 may dictate SHIB’s short-term trajectory.
After a recent upswing, Shiba Inu’s price jumped by 3%, outpacing the broader cryptocurrency market, which saw a gain of 2.03%. This rally is attributed to the heightened attention from institutional investors, particularly following T. Rowe Price’s proposed ETF listing SHIB as a potential asset.
Despite this positive short-term momentum, the overall trend for memecoins appears fluid. The weakness in on-chain metrics, diminishing network activity, and persistent security concerns dampen the prospect of a sustained rebound.
Beneath the surface, indicators related to supply and liquidity illustrate a cautious outlook. Exchange reserves have plummeted, showing a decrease of 84.55 trillion tokens between September 2024 and September 2025. Such supply shocks can often lead to short-term price spikes as selling pressure wanes, but they may also heighten volatility risks, particularly if whales shift their balances back into the market rather than holding them.
Whales, Shibarium Activity, and the Risk of Another Decimal Drop
Technical indicators offer a mixed narrative. SHIB found support near the Fibonacci retracement level of 61.8% and rebounded from key territory around $0.0000095 to $0.0000098. Notably, the Relative Strength Index (RSI) hovers near 30, and the MACD histogram has recently turned positive.
Short-term projections indicate potential movement towards $0.00001078 and beyond if buyers can overcome immediate resistance at the 7-day and 30-day simple moving averages (SMAs). However, formidable resistance levels posed by the 200-day and 30-day moving averages could hinder further rallies.
Price chart of Shiba Inu | CoinMarketCap
Simultaneously, on-chain fundamentals and development indicators temper bullish sentiment. Shibarium’s activity suffered a dramatic 82% decline in daily transactions as of October, undermining both burn mechanisms and utility demand. Token burn totals dwindled from millions earlier in the week to a mere 2.57 million SHIB by October 31.
Coupled with reduced whale holdings and subdued open interest, these deteriorating conditions raise doubts about sustainable recovery buoyed by ETFs and hint at the possibility of SHIB dropping another decimal if market conditions worsen.
Adding to the uncertainty is a recent security incident where several signing keys associated with ShibaSwap appear to have been compromised, with estimated losses approaching $2.8 million. The community’s response and any subsequent audits will be closely monitored, as governance issues can quickly undermine institutional appetite for memecoins, even in the midst of ETF excitement.
Key Price Levels for Shiba Inu to Watch
Short-term traders should focus on SHIB’s ability to maintain support at $0.0000095 while attempting to reclaim the range between $0.0000102 and $0.0000109 on increased volume. Alternatively, long-term traders should keep tabs on ETF developments, on-chain activity, and governance improvements to assess whether Shiba Inu can transcend its memecoin label and attract significant institutional flows.
The inability to solidify technical gains or restore utility in Shibarium may signal a slide towards another decimal drop, even if the crypto ETF narrative continues to hold interest.
