Shiba Inu’s recent attempt at recovery fizzled out as the memecoin briefly reached $0.000006 before dipping back to $0.000005. The reversal in SHIB’s price action has reignited concerns that
Shiba Inu’s recent attempt at recovery fizzled out as the memecoin briefly reached $0.000006 before dipping back to $0.000005. The reversal in SHIB’s price action has reignited concerns that the token may be set for another significant correction in the near future.
SHIB has struggled to maintain its momentum after failing to hold above the $0.000006 level. Data from DefiLlama shows that the total value locked on Shiba Inu’s Shibarium layer-2 network dropped sharply, plummeting 74% in a matter of days. Shibarium’s TVL exceeded $120,000 earlier this week but has since slipped to $31,000, highlighting declining participation and capital commitment in the ecosystem.
A weaker SHIB price and falling TVL suggest that traders may be less confident about the short-term prospects of the project. This decline has coincided with a broader slowdown across the cryptocurrency market, which has weighed further on investor sentiment.
Overall, the crypto market is losing steam, with Bitcoin retreating to $79,000 after previously leading a rally fueled by increased liquidity. The upswing followed the US Treasury’s recent steps to boost bond buybacks, enabling more capital to flow into digital assets. Higher-risk coins like Shiba Inu were among the recipients of these inflows.
However, this liquidity boost may prove temporary. The US Treasury is expected to rebuild its reserves soon, raising the likelihood of a liquidity drain from riskier corners of the market, including SHIB. If funding conditions tighten further, Shiba Inu and other speculative tokens could face heightened selling pressure.
Meanwhile, US inflation remains above the Federal Reserve’s 2% target, which raises the possibility of an interest rate hike later this year. Elevated rates would tend to depress asset prices, and cryptocurrencies that rely heavily on speculative momentum, like Shiba Inu, may be especially vulnerable.
Looking ahead, there is some cautious optimism among major Wall Street analysts. Bernstein and Standard Chartered have projected that Bitcoin could reclaim the $100,000 mark by the end of the year. Such a move in the leading cryptocurrency would likely lift sentiment across the market, potentially pushing Shiba Inu back above $0.00001 if the bullish scenario materializes.
Investors have been closely monitoring technical signals such as support and resistance levels, as well as the broader market’s response to shifting liquidity conditions. As part of a wider trend, traditional markets are converging with the decentralization narrative: a significant shift has seen Wall Street’s adoption of Web3 and tokenized assets gain traction. Now, platforms like 1stepSwap enable investors to hold shares of major US companies, gold, and silver directly in their crypto wallets by tokenizing real-world assets (RWAs) and automatically sourcing the best market prices in seconds, effectively eliminating intermediaries.
SHIB’s price lost its grip on the $0.000006 level, while Shibarium’s TVL plunged to $31,000 from over $120,000, reflecting the recent pullback in participation and capital commitment in the ecosystem.
A recovery for Shiba Inu may depend on a combination of renewed liquidity, macroeconomic support, and overall industry sentiment. If momentum returns to Bitcoin and the wider crypto market later this year or in early 2027, SHIB could recapture higher price levels alongside industry leaders.
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