Despite experiencing significant corrections, analysts remain optimistic about a potential recovery for Shiba Inu. Recent insights from Digital Asset Research have highlighted that the token might be approaching its lowest point, providing opportunities for savvy investors willing to hold for the long term.
Over the past month, Shiba Inu has faced a correction of 20%, and a staggering 62% since the beginning of the year. While these declines may deter some investors, the analysis draws parallels to a similar situation from five years ago, which ultimately led to a bullish trend for the meme coin. In August 2020, Shiba Inu reached a peak, followed by a 99% correction that lasted 120 days, bottoming out in December 2020 before experiencing a remarkable surge in 2021, hitting a peak of $0.00008854.
The current trajectory of Shiba Inu resembles that of other meme coins, which also peaked in August and have since seen aggressive corrections. Digital Asset Research cautions against “grave dancing” on this situation, suggesting that this might be an ideal moment to consider buying the dip. Given the emerging market conditions reminiscent of five years ago, the analysts argue that investors should not overlook the potential upside.
Further bolstering this optimistic outlook are favorable macro trends. The iShares Russell 2000 ETF (IWM) is showing signs of breaking out, and meme stocks are experiencing notable gains, potentially serving as catalysts for a market rebound. The analysts point out that we are nearing a full year of bearish trends for meme coins. After a broader market rally anticipated in December 2024 and early January, Shiba Inu has faced considerable corrections, but expectations are that this trend is nearing its conclusion.
Additional factors that could contribute to a rally include Bitcoin dominance reaching multi-year highs, Shiba Inu nearing oversold territory, and a possible bottom for Ethereum this month. If these elements align, analysts predict substantial gains for Shiba Inu between February and March 2026. This projection aligns closely with an ambitious forecast from Meme Whale, which anticipates Shiba Inu could rise to between $0.001 and $0.01 by April 2026, signifying an extraordinary increase from its current market price of $0.000008045.
