Shiba Inu (SHIB) plummets 20% in two weeks: will there be another 80% crash?

Are SHIB bulls about to suffer another huge setback?

According to some analysts, the bad days for the bulls may be just beginning.

Devastating crash coming?

At the time of writing, SHIB is trading at around $0.000006127, which represents a decline of 20% on a 14-day scale. Its market capitalization fell to around $3.6 billion, making it the 30th largest cryptocurrency. Remember, it ranked much higher in the spring of last year, when its capitalization approached $10 billion.

One popular analyst who highlighted the demise of the meme coin is Ali Martinez. He claimed that the recent drop below $0.00000667 could have opened the door for a much deeper collapse as high as $0.00000138. Such a move south would mean a crash of as much as 77% from current levels.

Several key indicators also suggest that SHIB’s share price is headed for a further decline. Over the past 24 hours, the Shiba Inu team and community have burned a negligible 483 coins, representing a 99% decrease from yesterday.

The ultimate goal of the mechanism, which was adopted in 2022, is to reduce the total supply of the meme coin, potentially making it more valuable over time (assuming demand remains constant or moves north). Facts shows that the current circulating supply is roughly 585.46 trillion tokens, after more than 410.7 trillion SHIB have been scorched over the years.

Meanwhile, Shibburn – the X account spreading information about the recent token burns – has been inactive lately. The last update on this, from January 9, showed that the daily and weekly fire figures have not been impressive.

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Shiba Inu’s Relative Strength Index (RSI) supports the bearish scenario. In recent hours, the ratio has crossed 70, indicating the assets are overbought and may be setting up for a pullback. The technical analysis tool ranges from 0 to 100, with values ​​between 30 and 70 considered neutral, while anything below 30 can be seen as a buying opportunity.

Can the Bulls return?

Contrary to Martinez’s grim prediction, the analyst with the X name has Vuori Trading argued that SHIB may explode in the near future.

They claimed that the asset is still in the ‘bear trap’ phase, characterizing the setup as ‘pure manipulation before shooting higher’. The analyst set a target of “at least” $0.00014, which would be an all-time high and represent a staggering 2,200% upside from the ongoing valuation.

Despite the recent price drop, SHIB investors don’t seem to want to sell in a hurry. In fact, CryptoQuant’s data shows that the number of coins stored on exchanges has decreased over the past month. This trend signals a shift toward restraint and reduces immediate sales pressure.