 ▲ Shiba Inu (SHIB) / AI-generated image |
Shiba Inu (SHIB) is facing the risk of breaking a key support level, raising the possibility of a historic plunge of up to 75% and prompting caution among investors.
According to a report on March 2, prominent cryptocurrency analyst Ali Martinez warned that Shiba Inu could undergo a massive correction if it fails to overcome its current downtrend. Martinez noted that SHIB is testing the $0.00000510 support level, which it has firmly maintained for the past 56 months. If this level collapses, the price could fall as low as $0.00000138. This would represent a decline of approximately 75% from current levels, signaling intense selling pressure across the Shiba Inu ecosystem.
Technical indicators reinforce the bearish outlook. Over the past month, SHIB has dropped 22%, sliding to 27th place in market capitalization rankings. Weekly charts also show clear bearish signals, and if the token closes below $0.00000510, it risks falling through an intermediate support level at $0.00000304 before potentially reaching new lows. Analysts point out that SHIB is trading below all major moving averages, making it highly challenging to find short-term rebound momentum.
Negative developments within the ecosystem are further weighing on the price. In September 2025, Shibarium, Shiba Inu’s Layer 2 blockchain, suffered a hack that resulted in approximately $4 million in asset losses, significantly dampening investor sentiment. Although the development team has been working to strengthen security and restore trust, market response remains lukewarm. Adding to concerns, reports that Shiba Inu leader Shytoshi Kusama is pursuing an independent artificial intelligence project have fueled worries about a potential leadership vacuum.
On-chain data also reflects heightened tension. According to data from Santiment and CryptoQuant, SHIB holdings on exchanges briefly surged to 81.6 trillion tokens in late February, indicating a buildup of potential sell-side supply. However, recent large-scale withdrawals by whale investors have reduced exchange holdings to around 80.87 trillion tokens, a move interpreted as a sign of bargain buying. Nevertheless, many observers believe that such whale activity is insufficient to reverse the broader downward trend.
Shiba Inu now stands at a critical crossroads. If the support level it has defended for 56 months collapses, the token could fall out of the top 30 by market capitalization, increasing the risk of investor abandonment. Experts warn that amid ongoing geopolitical risks and macroeconomic uncertainty, the inherent volatility of meme coins could amplify downside pressure. Whether SHIB manages to stabilize or enters a historic downturn will likely depend on its ability to defend this crucial support level in the coming weeks.
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