Further decline or a revival: what’s next for the self-proclaimed Dogecoin killer?

The situation for the second-largest meme coin has worsened recently, following a double-digit slide over the past 14 days.

Some worrying factors suggest Shiba Inu (SHIB) could experience a further collapse in the near future, while one popular analyst predicted it might crash to a five-year low.

The Free Fall is Yet to Happen?

While Shiba Inu enjoyed some notable surges last year, 2026 has been nothing but painful. As of this writing, it trades at around $0.000005467 (per CoinGecko’s data), representing a whopping 60% plunge on a yearly scale.

Its market cap has tumbled to roughly $3.2 billion, further widening the gap with niche frontrunner Dogecoin (DOGE), which maintains a capitalization of more than $15 billion.

According to Ali Martinez, SHIB might be on the verge of a crash to as low as $0.00000138. This is not the first time the analyst has warned about such a scenario. Last month, he noted that the meme coin dropped below the important level of $0.00000667, claiming this could have opened the door to a meltdown to the aforementioned zone.

Shiba Inu’s burning mechanism also signals that a further pullback may be on the way. Over the past 24 hours, the burn rate has decreased by approximately 99% after only 20,176 SHIB were sent to a null address.

The program’s ultimate goal is to reduce the meme coin’s overall supply, potentially making it more valuable in time (assuming demand remains constant or heads north). It was adopted in 2022, and since then, the team and community have destroyed more than 410.7 trillion tokens, leaving 585.47 trillion in circulation.

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The stalled progress of Shibarium is also a bearish factor. Shiba Inu’s layer-2 scaling solution saw the light of day in the summer of 2023 and aims to foster the project’s development by lowering transaction fees, improving speed, and enhancing scalability. It suffered an exploit in September last year, which shook investor trust and caused widespread damage across the Shiba Inu ecosystem. Prior to the incident, daily transactions processed on Shibarium were in the millions, while after that, they plummeted to mere thousands.

The Bullish Signals

Even as the meme coin struggles and the broader crypto market is under pressure, SHIB’s supply on centralized exchanges keeps shrinking. According to CryptoQuant’s data, those reserves fell below 81 trillion tokens, the lowest point since May 2021.

The development could be interpreted as a positive sign because it suggests that investors are in no rush to move their holdings to such platforms: a move often seen as a pre-sale step.

Meanwhile, Shiba Inu’s Relative Strength Index (RSI) briefly plunged below 30, indicating the asset has entered oversold territory and could be due for a resurgence. The technical analysis tool runs from 0 to 100, and conversely, ratios above 70 suggest SHIB could be overbought and gearing up for a possible correction. As of this writing, the RSI stands at roughly 36, or much closer to the bullish zone.

Is DOGE heading for a drop to a two-year low?

While the biggest meme coin by market capitalization saw a substantial uptick at the start of 2026, it has been on an evident decline over the past few days.

Some analysts think the downtrend might intensify, envisioning a potential 50% crash.

A Further Plunge?

On January 6, DOGE climbed to a local top above $0.15, but since then, the bears have regained control, and it is currently worth around $0.13 (per CoinGecko’s data).

The renowned analyst Ali Martinez paid special attention to the meme coin’s price performance and assumed that if the selling continues, it might find support at $0.06 (a 53% collapse from the ongoing levels). It is worth noting that a drop of that magnitude would mark the asset’s lowest level since November 2023.

The lack of serious interest in the spot DOGE ETF is also bad news for the bulls. Grayscale launched the first such product in the USA late last year, while Bitwise followed suit shortly after.

According to data from SoSoValue, these investment vehicles have attracted less than $7 million in cumulative net inflows to date. The figure is quite disappointing and suggests that big players such as pension funds, hedge funds, and asset managers remain reluctant to hop on the bandwagon.

For comparison, the spot XRP ETFs (which also debuted towards the end of 2025) have generated a cumulative net inflow of over $1.22 billion.

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The Bullish Scenario

Contrary to Martinez’s pessimistic assumption, multiple other market observers believe DOGE’s price is on the verge of a major resurgence. X user CryptoPulse outlined three key factors, including strong breakout volume, the formation of an RSI golden cross, and MACD in a bullish zone, to predict that the meme coin might soar to $0.20-$0.21 in the short term.

Bitcoinsensus was even more optimistic. They argued that DOGE’s bull cycle is about to repeat, envisioning a 900% pump to as high as $1.80.

Meanwhile, whales have been on a buying spree lately, which is definitely interpreted as a positive element. X user CEO revealed that large investors have accumulated almost 140 million DOGE (nearly $20 million) in the span of just 12 hours.

Continuous efforts in the field reduce the asset’s circulating supply and could influence a price uptick (should demand remain the same or increase). Additionally, the whales’ actions might attract smaller players, who can distribute fresh capital into the ecosystem.

DOGE and ADA show bullish reversal signs as TD Sequential and SuperTrend indicators flash buy. Analysts eye key resistance levels.

Technical signals are showing early signs of recovery for Dogecoin (DOGE) and Cardano (ADA), with analysts and sentiment trackers turning positive.

Both altcoins have posted prolonged declines but are now showing patterns associated with potential reversals.

Dogecoin Shows Technical Reversal Setup

DOGE is trading at around $0.15 at press time. It is down slightly in the past 24 hours and 3% over the week. Despite the short-term decline, analysts are now watching key signals. Ali Martinez reported that the TD Sequential tool has printed a buy setup for DOGE. The signal often identifies trend reversals at the end of correction phases.

TD Sequential says Dogecoin $DOGE is a buy! pic.twitter.com/yNM2FvvxMl

— Ali (@ali_charts) December 3, 2025

Meanwhile, Trader Tardigrade also pointed to a Dragonfly Doji on the weekly chart. This candle formed near support and suggests buyers stepped in to defend lower levels.

As CryptoPotato recently reported, DOGE is also showing a bullish MACD cross while entering what some analysts call the Wyckoff Spring phase. If the structure repeats, analysts are watching for a multi-year move toward $5 by 2026.

Don shared a falling wedge pattern on the weekly chart. If the asset clears $0.169, the next resistance may be $0.23. Volume is rising, and the price is tightening near the wedge top, which often leads to a breakout.

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Market sentiment also shows a shift. Market Prophit lists both its crowd and model sentiment as “bullish.” On-chain data shows that smaller holders are becoming more active, while whale activity has dropped to levels not seen in several months.

Cardano Signals Fresh Momentum

Cardano’s native token is priced at around $0.45 at the time of writing. It is up over 1% in the last 24 hours and about 4% over the past week. A SuperTrend buy signal just appeared, noted by Ali Martinez. ADA is trading near the $0.43–$0.45 range. Strength above this zone could shift short-term momentum.

SuperTrend just flashed a buy signal for Cardano $ADA. pic.twitter.com/DqV11b01oa

— Ali (@ali_charts) December 4, 2025

Ali Martinez also mentioned a TD Sequential buy signal for ADA, as we previously reported. The MACD has made a bullish crossover, with the histogram turning positive. RSI has climbed from 32.55 to 45.08, showing recovery but still below the neutral 50 mark.

Market Prophit listed ADA sentiment as “bullish.” Analyst BullishBanter said ADA broke above sell-side liquidity and is now trading in an upper imbalance zone. He added:

“If bulls hold above this zone, a push into the higher supply area isn’t off the table.”