Shiba Inu's Breakout Accelerated: A Rise of 783% Among Diamond Hands, SHIB Burn Rate Amplified by 1,784%
Shiba Inu, the popular meme cryptocurrency, has shown resilience in the face of recent market corrections, with a 9.7% increase in value over the past week, according to data from CoinGecko. This uptick has sparked excitement among investors and analysts, who are now predicting potential price movements for the digital asset in the short and long term.
## Current Price Predictions for Shiba Inu
In the short term, CoinCodex predicts a 27% rally for SHIB, targeting $0.0000179–$0.00001818 by mid-August 2025. This forecast is based on technical indicators and market sentiment.
Looking further ahead, some analysts believe Shiba Inu could reach $0.00013 by 2027 and $0.000153 on average that year. However, more ambitious targets like $0.001292 (a 9,900% increase) are projected by 2035, and $0.00646 (a 49,900% increase) by 2040.
## Key Factors Contributing to a Potential Major Breakout
Several factors are contributing to Shiba Inu's potential for a major breakout. One of the most significant is the ongoing reduction of its massive circulating supply. The Shiba Inu team has introduced mechanisms like the Shibarium layer-2 solution, which is designed to facilitate burns and lower transaction costs, potentially accelerating the burn rate.
Another key factor is the increase in average holding periods, indicating that more investors are taking a "hold" approach rather than trading frequently. This behaviour can reduce selling pressure and support price stability or gradual appreciation, especially in a rising market.
The current Fear & Greed Index stands at 70 (Greed), with a bullish sentiment and a green day ratio of 53% over the last 30 days, suggesting positive investor outlook. Recent price recovery after a 25.5% drop earlier in the year has restored some confidence.
## Challenges and Counterpoints
Despite the bullish outlook, Shiba Inu faces challenges. The colossal circulating supply remains a persistent hurdle, as without dramatic increases in demand or burns, supply dilution limits the upside potential.
While Shiba Inu shows signs of recovery, some reports note that "whales" (large investors) are diversifying into other tokens, possibly reducing capital inflows to SHIB.
## Conclusion
Shiba Inu's potential for a major breakout hinges on a combination of increased token burns, longer average holding times, and sustained bullish momentum in the broader crypto market—especially Bitcoin. While technical indicators and market sentiment are currently positive, the token's massive supply remains a critical limiting factor.
For SHIB to achieve the most ambitious price targets, it would need not only a favourable macro environment but also transformative changes in its tokenomics, such as a much higher burn rate or real-world utility driving new demand.
Investors should consider both the bullish catalysts and the persistent risks before making decisions. The recent burn rate explosion, the increase in average holding times, and the price recovery after a correction all point towards a promising future for Shiba Inu.
Investors are closely watching the price predictions for Shiba Inu in both the short and long term, with CoinCodex predicting a 27% rally by mid-August 2025, and some analysts predicting prices as high as $0.001292 by 2035.
The ongoing reduction of Shiba Inu's circulating supply and the increase in average holding periods are key factors contributing to a potential major breakout for the cryptocurrency. However, challenges such as the colossal circulating supply and diversion of large investors to other tokens remain hurdles to achieving the most ambitious price targets.