Shiba Inu (SHIB) may be approaching a potential turning point after enduring an extended stretch of monthly losses. Since August 2025, the popular meme-based cryptocurrency has faced persistent downward pressure, recording a series of consecutive declines. The situation worsened in the final quarter of the year, with October through December posting some of the most significant drops during this period.
March Performance Signals Potential Shift
However, recent performance data suggests that momentum could be gradually changing. In March 2026, SHIB has demonstrated slight upward movement relative to its opening price for the month. While the gains remain modest, they mark a noticeable departure from the consistent declines seen in previous months.
Despite ongoing day-to-day volatility, the token continues to trade around $0.000005767. Short bursts of upward price action have helped counterbalance intermittent dips, raising the possibility that SHIB could close the month without extending its losing streak. This development, if sustained, would signal an important shift in short-term market sentiment.
On-Chain Data Highlights Growing Holder Confidence
Beyond price trends, on-chain metrics reveal evolving investor behavior that may support a more optimistic outlook. The number of wallets holding SHIB has steadily increased, now exceeding 1.55 million addresses. This growth indicates continued interest in the asset, even during periods of subdued price performance.
Notably, a large percentage of holders appear committed to long-term positions. Data shows that approximately 78% of SHIB wallets have retained their holdings for over a year. This suggests that many investors are choosing to hold rather than engage in short-term trading, reflecting confidence in the asset’s longer-term potential.
Further supporting this trend is a decline in exchange reserves. As more tokens are moved off trading platforms into private wallets, the available supply for immediate selling decreases. This reduction in liquid supply is often interpreted as a sign of lower selling pressure, which can contribute to price stabilization over time.
Technical Indicators Point to Possible Reversal
Technical indicators also point to possible improvements in market structure. Analysts have observed a divergence between SHIB’s price movement and its Relative Strength Index (RSI), a signal that downward momentum may be weakening. Additionally, the token has consistently held above a key support level near $0.0000050, with repeated rebounds suggesting strong buying interest at lower price levels.
If this support continues to hold, analysts believe SHIB could target the $0.00000725 range in the near term. Under more favorable conditions, further upside could push the asset toward its 200-day moving average, currently estimated at around $0.00000864. These projections, however, depend on sustained demand and broader market stability.
Outlook: Can SHIB Sustain a Recovery?
Activity from large investors has also contributed to the evolving outlook. Recent transaction data shows that a major holder accumulated more than 120 billion SHIB tokens through a series of purchases. Such large-scale accumulation is often viewed as a vote of confidence, as institutional or high-net-worth participants typically invest with a longer-term perspective.
In addition, ongoing token burn efforts, rising user adoption, and decreasing exchange balances are helping to create a more balanced supply-demand dynamic. While volatility remains a factor, these underlying developments suggest that market sentiment may be gradually improving.
Although SHIB is still trading well below its previous peaks and faces lingering uncertainty, current indicators point to a possible stabilization phase. If investor interest continues to grow and technical conditions remain supportive, the asset could be positioned for a more sustained recovery in the coming months.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research before making any financial decisions.
