Shiba Inu Gains 30% Amid Market Rally, But There’s Trouble Ahead

Shiba Inu (SHIB) made a recovery to the $0.00000620 price level after a market-wide rebound. CoinGecko data shows that SHIB’s price surged by 21.7% in the last week and more than 31% in the monthly charts. SHIB is one of the most popular cryptocurrency assets in the market. Despite its popularity, SHIB’s price has struggled to gain momentum over the last year and a half. While the rally is welcome, there might be trouble ahead.

Can Shiba Inu Sustain Its Price Recovery?

Shiba Inu (SHIB) is already showing signs of weakness. The dog-themed cryptocurrency has fallen to the $0.000005576 price level and may continue to dip further. The cryptocurrency market, in general, is seeing a sell off. Nearly $550 million worth of long positions were liquidated earlier today in less than 60 minutes. Bitcoin (BTC) is also showing signs of a correction. If BTC dips, the larger market will likely follow suit. SHIB, often considered a “memecoin,” may face steeper price corrections.

Shiba Inu’s (SHIB) recent rally came after President Trump’s White House cryptocurrency event. Trump hosted CEOs and founders of several cryptocurrency platforms and companies. During the event, Trump stated that the US may purchase a large amount of Bitcoin (BTC) and other cryptocurrencies. The statement led to a massive surge in investor sentiment, triggering a market-wide rally.

Also Read: $550 Million Wiped From The Cryptocurrency Market In 60 Minutes

While the rally is welcome, it still hinges on President Trump’s word about the US purchasing a large amount of cryptocurrencies. If the plan does not follow through, Shiba Inu (SHIB) and other crypto assets may see a price correction.

Inflation is another factor that could negatively hamper Shiba Inu’s (SHIB) price. Although CPI (Consumer Price Index) figures have dipped in July 2026, inflation still remains above the Federal Reserve’s 2% target. If inflation does not cool further, there is a chance that the Fed will raise interest rates. Higher rates often lead to less risky investments. Shiba Inu (SHIB) is a high-risk asset and may face challenges. According to CME FedWatch data, there is a 60.1% chance that interest rates will remain unchanged after the Fed’s next meeting, and a 39.9% chance that we will see a rate hike.