Shiba Inu May Be In For A Price Crash: Know This First

Shiba Inu’s (SHIB) lackluster streak came to an end earlier this week after the coin briefly reclaimed the $0.000006 price level. SHIB has since dipped to the $0.000005 mark and could face another steep price correction in the coming days. Let’s discuss what may happen for the memecoin next. Is Shiba Inu (SHIB) heading for another price crash?

Will Shiba Inu Face Another Price Crash?

Shiba Inu (SHIB) is already showing signs of weakness. SHIB’s price has failed to hold on to the $0.000006 price level. According to DefiLlama data, Shiba Inu’s (SHIB) Shibarium network has seen a 74% plunge in tis TVL (Total Value Locked). Shibarium’s TVL stood at over $120,000 a few days ago, but has fallen to the $31,000 level since.

The larger cryptocurrency market is also slowing down, with Bitcoin (BTC) dipping to $79,000. The market rally was fueled by increased liquidity due to the US Treasury’s decision to increase bond buy backs. The move led to more liquidity for the crypto market. High-risk assets such as Shiba Inu (SHIB) were the beneficiaries of the move.

While the increased liquidity was welcome, the US Treasury will have to eventually refill its coffers. We could a a liquidity drain from the cryptocurrency market in due time. Shiba Inu (SHIB) and the larger crypto market could face steep price correction under such circumstances.

Additionally, inflation in the US is still higher than the Federal Reserve’s 2% target. There is a chance that the Federal Reserve will raise interest rates later this year to combat high prices. Higher rates could substantially hurt Shiba Inu’s (SHIB) price.

Things could get better for Shiba Inu (SHIB) in late 2026 or early 2027. Wall Street analysts from Bernstein and Standard Chartered anticipate Bitcoin (BTC) reclaim $100,000 by the end of this year. BTC hitting $100,000 could potentially push Shiba Inu (SHIB) back above the $0.00001 mark.