Shiba Inu faces historic weekly death cross after 66% yearly decline, but 2026 catalysts including Shibarium privacy upgrades and institutional ETF recognition offer potential recovery pathways.
Shiba Inu records its first weekly death cross in 2025 as the token slides 66.8% year-over-year. However, multiple catalysts could reshape the meme coin's trajectory in 2026.
The popular meme coin has experienced severe turbulence throughout 2025. Investors who entered positions at the start of the year have watched their holdings shrink by approximately 66.8%. The decline accelerated after the October 10 flash crash when SHIB lost the critical $0.00001 psychological level, plunging to $0.000007448.
Technical indicators had been flashing warning signs well before the sell-off intensified. Multiple death crosses appeared on daily timeframes throughout 2025, with occurrences in February and September. However, the most significant signal emerged in early November when the 50-week moving average crossed below the 200-week moving average for the first time in the token's history.
According to The Crypto Basic, on X, the weekly death cross marks "a significant technical breakdown" that confirms "sustained loss of momentum and reinforcing the token's bearish outlook."
The token briefly rebounded to around $0.000007 earlier today after testing lower support levels. The current price action highlights continued market fragility as Shiba Inu struggles to establish a stable floor.
Privacy Upgrade Could Transform Shibarium
Despite the bearish price action, significant developments are positioning SHIB for a potential 2026 revival. The ecosystem's Layer-2 network, Shibarium, is preparing for a major technological upgrade.
Marketing lead Lucie confirmed that Shiba Inu's cryptography partner, Zama, plans to deploy Fully Homomorphic Encryption technology on Shibarium by early 2026. This upgrade aims to enhance privacy and security across the network while enabling fully confidential smart contract execution.
The FHE implementation could attract developers interested in building privacy-focused applications on Shibarium. This technology allows smart contracts to operate on encrypted data without ever decrypting the information, positioning Shibarium as one of the first EVM-compatible Layer-2 networks with native FHE support.
Institutional Recognition Through ETF Filing
Beyond technical upgrades, Shiba Inu is gaining traction in traditional finance circles. Asset management giant T. Rowe Price, which oversees $1.77 trillion in assets, filed for a basket ETF that lists SHIB among its potential holdings.
This marks the first time Shiba Inu has been included in a U.S. Securities and Exchange Commission-registered ETF filing. The proposed Active Crypto ETF would hold between 5 to 15 cryptocurrencies, with SHIB listed alongside Bitcoin, Ethereum, and Solana.
If approved and included in the final portfolio, the ETF could funnel institutional capital into SHIB, potentially increasing demand and improving market liquidity. The development could also encourage other asset managers to pursue standalone SHIB ETF products in the United States.
The broader regulatory environment may also shift favorably. Momentum is building around the possible passage of the CLARITY Act, which could help draw institutional capital into the digital asset market and benefit tokens like Shiba Inu.
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Key Takeaways:
- SHIB records first-ever weekly death cross with 50-week MA crossing below 200-week MA in November 2025
- Shibarium set for major FHE privacy upgrade by early 2026 through partnership with cryptography firm Zama
- T. Rowe Price files basket ETF including SHIB marking first US institutional recognition for the meme coin
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SHIB Weekly Death Cross 2026 Catalysts Emerge
Shiba Inu records first weekly death cross in 2025 with 66.8% yearly decline. Privacy upgrades and ETF filing could reshape SHIB's 2026 trajectory.
