Shiba Inu faces 65% drop with unlikely return to $0.000025

Recent analysis suggests that Shiba Inu (CRYPTO:SHIB) may not reach $0.000025 in 2024 due to its close correlation with the broader altcoin market, which has been in a prolonged bearish phase. 

Despite a brief surge in March 2024, when SHIB reached a yearly high of $0.000035, the token has since declined by 65%, reflecting the downturn affecting many altcoins. 

According to Brian Quinlivan, Lead Analyst at Santiment, SHIB's recovery is heavily dependent on a market-wide rebound among altcoins. 

"The 30-day average trading returns are down just slightly at -1.1%, while the long-term returns are down a whopping -31.7%," Quinlivan noted, adding that SHIB's performance could improve if Bitcoin stabilizes and altcoins flourish. 

However, he acknowledged that current market conditions do not favor such a turnaround. 

On-chain data further indicates a decline in SHIB's social dominance since May 2024. 

Social dominance measures the level of discussions around a cryptocurrency compared to others in the top 100. 

The decline suggests waning interest in SHIB, likely driven by growing Fear, Uncertainty, and Doubt (FUD) surrounding the token. 

Another sign of market uncertainty is the shift in SHIB ownership. 

Retail investors holding between 100 and 1 million tokens have been accumulating, while larger investors holding between 100 million and 1 billion tokens have been reducing their holdings. 

This divergence underscores the cautious sentiment in the market. 

Weekly chart analysis also shows that SHIB is following a pattern similar to April 2022, where it struggled to rise after a sharp decline. 

Without an altcoin rally, SHIB may face resistance around $0.000018 and could drop below $0.000010, making it unlikely to reach $0.000025 by the end of 2024.

At the time of reporting, the Shiba Inu (SHIB) price was $0.0000135.