Shiba Inu Signals Bullish Trend Amid Market Lull

Key Takeaways
Memecoins like Shiba Inu (SHIB) are once again showing strong price movements—similar to early 2024. While major altcoins are stagnating under the dominance of Bitcoin (BTC), the memecoin sector is gaining momentum. The market capitalization of memecoins has recently increased by 6%. SHIB stands out due to declining exchange reserves and a high proportion of long-term holders. This development may signal the beginning of a new memecoin cycle.
Memecoins Defy Market Trends
During phases when Bitcoin moves sideways, speculative investors tend to shift capital into riskier assets like memecoins. That’s exactly what we’re seeing now: while BTC maintains its market structure, memecoin prices are rising. SHIB has historically posted strong daily gains—sometimes over 30%—during such periods.
Shiba Inu: Historical Pattern Repeats
In March 2024, SHIB exhibited a series of three higher highs with significant price increases. These rallies followed a prolonged accumulation phase. Currently, SHIB is once again consolidating within a narrow price range around USD 0.00001230. This suggests a possible repetition of the pattern.
Declining Exchange Reserves as a Bullish Signal
A key feature of the current trend is the decline in SHIB holdings on exchanges—both spot and derivatives markets. Reserves are at their lowest level in four years. At the same time, long-term holders (LTH) now control around 80% of the total SHIB supply. This reduces sell-off risk and tends to support the price.
Market Structure Indicates Sector Rotation
Other major memecoins are showing similar price behaviour: sideways movement within a tight range, accompanied by stable liquidity. According to data from Coinglass, the current market structure closely resembles the situation at the beginning of the year—a period during which SHIB saw significant gains. These parallels point to a possible repetition of that trend.
What You Should Keep an Eye On
Whether this leads to a sustainable upward trend depends on several factors. Key indicators include:
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- Liquidity flows on exchanges
- Open interest in the derivatives market
- Changes in exchange reserves
Only if these metrics continue to indicate accumulation and rising demand could a so-called “Memecoin Supercycle” emerge—a longer-term upward trend within the sector.
Our Assessment
The current data suggests increased speculative activity in the memecoin space. Shiba Inu in particular shows structural similarities to previous rally phases. The combination of declining supply, strong LTH dominance, and stable market structure suggests that memecoins could deliver above-average performance in Q2 2025. Anyone active in this segment should closely monitor developments—especially with SHIB.