Shiba Inu Price Prediction for August 2025: Can SHIB Recover After a 21% Drop?

Shiba Inu (SHIB) has taken a sharp turn in early August 2025, losing roughly 21% of its value over the past 10 days. This drop follows a strong mid-year rally and has left many crypto investors questioning whether it’s a short-term correction or the start of a longer downtrend. A major driver behind the decline is a 40% decrease in new wallet addresses interacting with SHIB, signaling that fresh buyer demand has slowed.

Despite the pullback, the core SHIB community remains highly committed, with nearly 96% of holders continuing to hold their tokens. This loyalty suggests strong long-term conviction among existing investors, even as short-term sentiment softens. As August unfolds, the focus will be on whether SHIB can hold its critical support levels, regain momentum, and potentially stage a recovery from its recent 21% slump.

SHIB’s 21% Drop: How the August Selloff Unfolded

Shiba Inu (SHIB) Price

Source: CoinMarketCap

Over the past couple of weeks, Shiba Inu has slid from mid-July highs near $0.000016 to around $0.000012 in early August, marking its lowest point since July 9. As of this writing, SHIB was trading near $0.00001218, following a brief 1% intraday bounce. This pullback unfolded alongside a broader market slump — Bitcoin and Ethereum fell ~3% and 8% respectively during the same period — as macroeconomic pressures, including new U.S. tariff announcements that strengthened the dollar, weighed on risk assets.

Before the correction, SHIB had been climbing steadily, gaining roughly 9% through July before stalling at key resistance levels. Selling pressure intensified at the end of the month, with a 6% single-day drop around July 31–August 1, sending the price from roughly $0.000013 down to $0.000012 in 24 hours. Trading volumes surged during the selloff, reflecting heightened volatility as sellers tested lower price levels. Since then, SHIB has stabilized in the low $0.000012 range, hinting at a tentative support base — but still sits about 20–25% below its late-July peak, keeping investors on alert for the next decisive move.

Technical Outlook: Can SHIB Hold Its Support?

Shiba Inu is currently trading at a crucial juncture between support and resistance. On the daily chart, the recent selloff pushed SHIB to test the critical support zone around $0.0000118. Holding this level is key — if buyers defend it, the token could rebound toward $0.0000131–0.0000132 in the near term. A bounce here would help reverse the short-term downtrend, but a break below $0.0000118 could open the door to further downside, with $0.0000114 as the next likely support area. On the short-term charts, SHIB has struggled to break above $0.0000122 resistance, suggesting that bulls need a strong close above this level to regain momentum. The major upside barrier remains around $0.000016, the late-July high, which would be the trigger for a more decisive bullish reversal.

Some analysts see a potential bullish setup forming. A “cup-and-handle” pattern, supported by a double-bottom base, may be in play — with whale accumulation adding strength to the structure. If confirmed, this could point to up to ~70% upside from current prices. July’s price action also produced an inverted hammer candlestick, often a signal that selling pressure is weakening. Technical indicators show a mixed picture: the daily RSI is around 38, nearing oversold territory, and stochastic oscillators are deep in oversold ranges, hinting at a possible bounce. However, the MACD remains in negative territory, and SHIB is still hugging the lower Bollinger Band. Together, these signals suggest that while downward momentum may be fading, a sustained recovery will require both technical follow-through and increased buying volume.

Shiba Inu Development Updates and On-Chain Progress

While SHIB’s price has been under pressure, the Shiba Inu ecosystem continues to advance. In late July, developers rolled out a major update to Shibarium , the project’s Layer-2 blockchain. This upgrade refreshed developer documentation, added new software development kits (SDKs), integrated a Shibarium Hardhat plugin for smart contract deployment, and improved guides for setting up validator nodes. A notable addition is the Paymaster feature, allowing decentralized apps to sponsor users’ gas fees — a move aimed at making Shibarium more accessible to everyday users.

These updates appear to be boosting on-chain activity. Shibarium is now processing over 3 million transactions per day, with cumulative transactions exceeding 1.4 billion. This surge in network usage has helped accelerate Shiba Inu’s token burn mechanism, which removes SHIB from circulation with each transaction. Over the past week alone, the SHIB burn rate jumped 360%, permanently removing roughly 135 million tokens, including a single-day burn of 6.3 million SHIB — a 2,742% increase from the previous day.

Investor sentiment remains cautiously optimistic. The broader Crypto Fear & Greed Index sits at 48, indicating a neutral market mood. Within the SHIB community, engagement remains strong, supported by the project’s fifth anniversary celebrations earlier this month. Many holders view Shibarium’s growth and the ongoing burns as a foundation for long-term value, though most agree that meaningful price recovery will require renewed demand from outside the existing community.

SHIB Holder Trends: Who’s Buying and Who’s Waiting

On-chain data reveals that large holders have been active buyers during SHIB’s recent price drop. As the token fell by 12–21%, whale investors accumulated approximately 4.66 trillion SHIB — worth nearly $64 million — around the $0.00001317 level. This accumulation absorbed selling pressure and helped prevent a deeper decline. Exchange data also shows a reduction in SHIB balances on exchanges, suggesting these tokens were moved to private wallets for long-term holding. This is often a bullish signal, indicating that major investors are willing to lock up supply rather than keep it readily available for selling.

Beyond the whales, Shiba Inu’s retail holder base remains impressively loyal. About 96% of SHIB holders on Coinbase are still holding their positions, one of the highest retention rates among major cryptocurrencies. However, new adoption has slowed — the number of new addresses interacting with SHIB has dropped by roughly 40% recently. Currently, only 27% of addresses are in profit, meaning most holders are at a loss but may be unwilling to sell at depressed prices. While this could limit immediate selling pressure, it also means that any short-term rally might face resistance from holders looking to break even. Overall, whale accumulation and strong community retention provide a solid foundation for recovery — but renewed inflows from new buyers will be key to driving SHIB higher.

Shiba Inu (SHIB) Price Prediction for August 2025

Analysts see SHIB’s August outlook ranging from flat to a strong rebound, depending on whether it can hold support near $0.0000118. A realistic recovery could push the price into the $0.0000150–$0.0000173 range, while bullish scenarios target up to $0.0000224.

Possible scenarios:

● Conservative: $0.0000120–$0.0000135 if momentum stays weak and no new catalysts emerge.

● Moderate bullish: $0.0000150–$0.0000173 if support holds and buying volume improves.

● Optimistic: $0.0000180–$0.0000224 with strong breakout, whale accumulation, and positive market sentiment.

Upside drivers include whale buying, bullish chart setups, and higher burn rates from Shibarium. Risks remain if Bitcoin or Ethereum weaken or retail interest stays low. The most probable outcome is a push toward the mid-$0.00001x range, provided key support holds.

Conclusion

Shiba Inu enters August 2025 at a pivotal moment, coming off a 21% drop that tested investor confidence. Strong holder loyalty, whale accumulation, and active ecosystem development through Shibarium provide a supportive backdrop, but the token’s near-term path depends heavily on holding the $0.0000118 support level.

If this base holds and buying volume returns, SHIB could recover toward the mid-$0.00001x range in the coming weeks, with more ambitious targets possible if market sentiment improves. However, a breakdown below support could see the token drift sideways or lower. For now, investors should keep a close watch on support levels, trading volume, and ecosystem updates as the key signals for SHIB’s next move.

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