Shiba Inu Falls to 23-Month Low—How Worse Can It Get for SHIB
Shiba Inu, the second-largest meme coin, has hit a 23-month low of $0.00000837 amidst a broader market downturn, losing over 57% of its value since the beginning of the year. Despite bullish developments like increased burn rates, reduced exchange reserves, and a Shiba Inu spot ETF filing by T. Rowe Price, SHIB remains bearish, falling below key moving averages. Analysts predict a potential further drop to $0.000006 or a relief rally to targets such as $0.0000115 and $0.00001220 based on market trends.
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Shiba Inu's Price Drops to a 23-Month Low
Shiba Inu has continued to show weak momentum, with the latest capitulation pushing prices to a level last seen nearly two years ago. The broader market onslaught has not spared Shiba Inu, the second-largest meme coin by market cap. On Tuesday, SHIB dropped to a 23-month low of $0.00000837. For perspective, Shiba Inu last visited this price level on January 3, 2024. During the latest market slump, SHIB reached an intraday low of $0.00000827 before rebounding to close at $0.00000957.
Investors Face Significant Losses
Investors who bought at the start of the year would have lost more than half of their money—specifically, 57%, as Shiba Inu has underperformed significantly. This is despite Bitcoin realizing record-breaking price levels multiple times this year. Additionally, several supposed bullish ecosystem developments have failed to reverse the prevailing bearish trend in SHIB’s price.
Bullish Developments and Institutional Interest
The Crypto Basic recently reported increased burn rates and a drop in the Shiba Inu exchange reserve, factors that are traditionally bullish for SHIB. Moreover, SHIB saw its first ETF filing after prolonged anticipation. Specifically, the $1.7 trillion asset manager T. Rowe Price filed for a Shiba Inu spot ETF in late October, signaling potential institutional traction. However, despite these developments, SHIB has continued its downtrend, raising questions about its future recovery.
Shiba Inu Loses Key Moving Averages
Amidst the continued downtrend, Shiba Inu has now lost all moving average support. After failing to reclaim the 200-day exponential moving average (EMA) several times, SHIB has now fallen below the 200-day, 50-day, and 20-day moving averages. During October, SHIB retested MA20 at $0.0000099, but the ongoing downtrend prevented a breakout above this level.
Possible Support Levels and Future Outlook
How low can Shiba Inu fall? Analysts indicate that the next significant support level lies around $0.000006, a region that historically cushioned price dips during the 2022/2023 bear market. This would represent a possible 33% retracement if SHIB’s 11-month consolidation phase continues. On the upside, a potential relief pump could see SHIB rise to $0.0000115, $0.00001172, and possibly $0.00001220 based on market sentiment and recovery trends.