SHIB big dump 10%! Is it a crisis or an opportunity?

As of November 4, 2025, the trading price of Shiba Inu (SHIB) is $0.0000091, down more than 10.16% in the past 24 hours.

Currently, SHIB’s price has fallen below all key moving averages, including the 20-day moving average ($0.00001014), the 50-day moving average ($0.00001139), and the 200-day moving average ($0.00001266), reflecting sustained selling pressure across multiple timeframes.

01 Price Trend: Sharp Decline and Loss of Key Support Levels

Shiba Inu’s performance in October disappointed many investors, breaking a sustained 8-month sideways trading range.

This range has served as a critical support structure since early 2025, but its breach marks a significant shift in market sentiment. This breakdown is not merely technical but also signals a loss of confidence among long-term holders.

Current Price Situation

After breaking below important support, SHIB formed a narrower consolidation zone between $0.0000093 and $0.0000113. This short-term channel reflects a tug-of-war between diminishing optimism and ongoing selling pressure.

Notably, each rebound toward the upper end of this zone, especially around $0.0000103, faced strong resistance. This level now acts more like resistance than support, indicating that once the structure’s integrity is compromised, the previous support can turn into a ceiling.

Technical Indicator Analysis

From a technical perspective, SHIB’s short-term outlook remains bearish. The 4-hour chart shows the asset trapped within the recent range, unable to regain critical pivot points.

Momentum indicators agree— the MACD histogram remains below zero, indicating persistent negative momentum in price changes.

However, not all signals are negative. The On-Balance Volume (OBV) has formed higher lows over the past three weeks. This divergence—price falling while OBV rises—may sometimes signal accumulation by patient buyers.

02 Market Dynamics: Supply Reduction and Institutional Interest Paradox

Despite weak price performance, the Shiba Inu ecosystem continues to show significant development, which could influence its medium- to long-term outlook.

Token Burn Rate Surges

A key indicator is the recent spike in SHIB’s token burn rate. Data shows a 208% increase in burn rate within a day, with nearly 8 million tokens destroyed, and reports indicate that in another 24-hour period, the burn rate surged by 957.9%, permanently removing 11.3 million SHIB from circulation.

This supply reduction mechanism is an important part of SHIB’s economic model and could exert upward pressure on the price over time.

Increased Institutional Recognition

Shiba Inu recently gained notable institutional recognition, being included in the FTSE Graystone Cryptocurrency Industry Framework. More importantly, SHIB appeared for the first time among eligible assets in Graystone and the Coplex Group’s spot crypto ETF applications.

This increased institutional visibility marks a key step in SHIB’s transition from a meme token to a more mainstream crypto asset.

03 On-Chain Data: Whale Behavior and Holding Patterns

On-chain analysis provides a clear picture of holder dynamics, revealing large investor activity behind recent price declines.

Whale Distribution Patterns

Since early September, the total supply held by whale addresses (typically wallets holding over 1 billion SHIB tokens) has been steadily decreasing. This behavior is not random but indicates deliberate reduction by the most influential market participants.

This pattern intensified in October, with two notable spikes in dormant circulation on October 19 and 26, where tokens dormant for months or years moved in large quantities.

Signs of Accumulation

Despite the overall bearish outlook, some data suggest signs of accumulation. In late October, over 2.89 trillion SHIB (about 1.45% of circulating supply) was transferred from exchanges to cold storage— a clear whale accumulation signal.

Additionally, the number of on-chain addresses increased—reaching 1,546,558 as of October 21—indicating growing retail participation. While this does not guarantee a price rebound, it provides a foundational support during market weakness.

04 Network Development: Shibarium Upgrade and Ecosystem Evolution

Beyond price and market dynamics, the Shiba Inu ecosystem continues to develop, with its Layer 2 solution, Shibarium, implementing significant security upgrades.

Infrastructure Improvements

The Shibarium network recently carried out a major security upgrade and disabled its traditional Remote Procedure Call (RPC) endpoints following previous vulnerabilities. These upgrades aim to enhance decentralization and reduce single points of failure.

Despite weak price action, the network continues to demonstrate active engagement, with over 1.5 billion transactions, 300,000 total accounts, and 272.7 million wallet addresses.

Adoption Challenges

However, Shibarium’s adoption remains a challenge. Its total value locked (TVL) is still below $1 million, indicating that the ecosystem has yet to gain significant traction. If ecosystem upgrades attract attention, they could catalyze SHIB’s shift from a meme token status toward utility-driven value.

05 Market Forecast: Divergent Views and Future Scenarios

Analysts hold differing opinions on SHIB’s future, with various experts providing contrasting forecasts based on current indicators.

Bearish Outlook

Antoine Karitonov (a trader alliance expert) views SHIB’s technical position as firmly bearish, with all key moving averages reinforcing downward momentum. Despite recent institutional interest and token burns, he remains cautious, noting that these developments cannot support price stability amid ongoing selling pressure.

Past security vulnerabilities and below-average recovery prospects amplify downside risks.

Bullish Factors

Conversely, Viktor Kasparyan (another trader alliance expert) believes that SHIB’s inclusion in leading institutional frameworks (such as the FTSE Graystone Cryptocurrency Industry Framework and major ETF applications) signals strong mid-term adoption and investor confidence.

He points out that the 208% surge in burn rate and ongoing network improvements reflect proactive management, which could support a constructive outlook despite short-term price weakness.

Price Predictions

Based on trader alliance data, SHIB’s forecasts are as follows:

• 24-hour forecast: down 4.05% to $0.00000876
• 7-day forecast: down 10.62% to $0.00000816
• 1-month forecast: down 25.08% to $0.00000684
• 3-month forecast: up 30.89% to $0.00001195

These predictions highlight high market uncertainty, with short-term bearish sentiment coexisting with potential medium-term recovery.

06 Trading Strategies: Opportunities and Risk Management for Gate Users

For traders on Gate trading SHIB, current market conditions present both risks and potential opportunities.

Key Price Levels

Traders should closely monitor these levels:

• Immediate support: $0.00000909, the level that bulls are defending in November
• Secondary support: $0.00000850, which could serve as the next line of defense if primary support fails
• Immediate resistance: $0.00001032, where the moving average cluster presents resistance
• Stronger resistance: $0.00001048, breaking above this could set the stage for a tactical rebound

Entry Strategies

Based on technical and on-chain signals, consider the following entry points:

• Primary entry: $0.00000909 (support level)—a rebound here would confirm short-term bullish momentum. Pair this with bullish divergence in the Relative Strength Index (RSI) to validate the setup.
• Secondary entry: $0.00001032 (moving average cluster resistance)—if SHIB breaks this level with trading volume exceeding $250 million, it indicates institutional buying. Closing above $0.00001032 may target $0.00001025, a psychological level for bulls.

Risk Management

Risk management is crucial in any scenario:

• Stop-loss placement: below $0.00000900—breaking this level invalidates the bullish case and could lead to retesting $0.00000850.
• Position sizing: considering SHIB’s high volatility, opt for smaller positions to withstand short-term fluctuations without risking margin calls.
• Portfolio allocation: treat SHIB as a high-risk speculative part of your portfolio, not a core holding.

Future Outlook

As SHIB tests these key levels in early November, all eyes are on whether it can hold the support at $0.00000909.

Gate provides users with the necessary tools to trade SHIB under such volatile conditions, including advanced charting features and various order types to manage risk effectively.

While the short-term outlook remains challenging, the combination of institutional recognition and token burn mechanisms could lay the groundwork for price stabilization and future growth.

Markets are always unpredictable, especially for a token known for resilience and passionate community support.