After struggling in a downward trend for the past two months, Shiba Inu (SHIB), the largest dog-themed memecoin on the Ethereum (ETH) network, may have finally reached its correction bottom. But is this the start of a real comeback or just another temporary bounce?

With a fully diluted valuation of about $7.4 billion and a 24-hour trading volume of around $120 million, SHIB has shown signs of life, climbing 5% over the past week. As of Wednesday, March 19, 2025, during the mid-London trading session, the token was trading at approximately $0.0000126.

What’s next?

Why Has Shiba Inu Been Struggling?

SHIB has faced strong bearish pressure in recent months due to lower demand for memecoins and economic uncertainty caused by U.S.-led tariff wars. However, Bitcoin’s (BTC) potential breakout, fueled by rising gold prices, has helped reignite interest in the market.

On Wednesday alone, Shiba Inu saw a notable jump in large transactions over $100K, reaching 67, according to data from IntoTheBlock.

Key Support Zone: Will SHIB Hold or Drop Further?

Technically, SHIB has been retesting a crucial support range between $0.00001 and $0.000013. The token also shares a strong price correlation with Ethereum, which analysts expect to recover soon.

However, if SHIB consistently closes below this support level, it could trigger a further decline toward $0.0000078, potentially delaying hopes of a strong price rally.

Strong Fundamentals

Shiba Inu has evolved from a purely speculative memecoin into a utility-driven altcoin. The Shibarium Layer-2 scaling solution and ShibaSwap (BONE) have played a significant role in this transformation. These platforms currently hold a total value locked (TVL) of approximately $2 million and $11 million, respectively, supporting SHIB’s long-term prospects.

Despite its growth, SHIB faces increasing competition from other memecoins with strong communities and active developers. As the space evolves, Shiba Inu must continue innovating to stay relevant and sustain its momentum.