The recent trends in the cryptocurrency market have shown significant fluctuations, particularly for meme-based coins like Shiba Inu. As the market enters a cooling phase, many investors are starting to reconsider their positions, especially since Shiba Inu is now nearly 92% down from its peak in 2021. Predictions from advanced algorithms indicate a continued downward trajectory for this digital coin.
Anticipating a Continuation of the Shiba Inu Downtrend
Shiba Inu has plummeted over 14% just this month, demonstrating a worrying trend for holders. Forecasts from the CoinCodex platform have indicated that this decline might persist as the year comes to a close, further exacerbating losses.
According to latest predictions, Shiba Inu’s price could hover around $0.000007038 in the next five days, potentially leading to a monthly loss nearing 20%. As investor sentiment settles into a zone of Extreme Fear, many are hesitant to inject new capital into this asset class.
Expect increased volatility during this period, with a rate sitting at a concerning 5.62%. This suggests that those involved with Shiba Inu are at a heightened risk of financial loss. For prospective investors, it may be wise to hold off until the market stabilizes following this downward trend.
Looking toward the medium and long-term forecasts, there are signs of optimism. Predictions for a one-month outlook suggest a potential rebound with a 15.89% rise, possibly surpassing the $0.000008 mark. Additionally, the three-month outlook continues to expect that Shiba Inu can maintain its position above this threshold.
Reasons Behind the Expected SHIB Downtrend in January
Historically, while January has proven to be a favorable month for cryptocurrencies like Bitcoin, Shiba Inu has exhibited a contrasting trend. Over the past four years, it has only posted a gain in January once. This trend has often been mirrored by a slow December performance, leading to red numbers rolling into the new year.
If the historical pattern persists, there is a strong likelihood that the Shiba Inu price could face another significant decline in January 2026. Typically, it is around February when Shiba Inu begins to recover, marking one of its best months since its inception in 2020, as suggested by data shared by CryptoRank.
