Analysis of Shiba Inu’s Potential Price Surge to $1
The recent surge in Shiba Inu’s (SHIB) burn rate has sparked optimism among cryptocurrency analysts, with some predicting a strong bullish breakout in the coming weeks. As of December 14, 2024, SHIB was trading at $0.00002812, representing a 163% increase from its lowest level in August. This growth is significant, but the question remains whether SHIB can realistically soar to $1.
Burn Rate and Tokenomics
The 24-hour burn rate jumped by 425% to 71,122,860 coins, bringing the total number of burnt SHIB coins to over 410 trillion. With over 584 trillion coins in circulation, the burn rate is a crucial factor in reducing supply and potentially driving up demand. Shibarium, a layer-2 network, has handled over 645 million transactions and has over 2.01 million addresses, with some of the BONE fees converted to SHIB and burnt. This ecosystem plays a vital role in the token burn process.
Technical Analysis
The daily chart shows a slow uptrend since SHIB bottomed at $0.00001095 in August. The formation of a golden cross pattern on November 4, where the 200-day and 50-day moving averages crossed, is a bullish sign. Additionally, a cup and handle pattern has formed, indicating a potential continuation of the uptrend. The consolidation phase, as the handle section of the pattern develops, suggests a likelihood of a bullish breakout.
Predictions and Probability
While some analysts, like SHIB Mortal and Daink, predict a strong bullish breakout, with SHIB potentially reaching $1, this scenario is highly improbable. To reach $1, SHIB would need to rise by 3.02 million percent. A more realistic estimate, based on the depth of the cup pattern, suggests a potential rise to $0.00005470.
Predictions for Shiba Inu’s Future
Given the analysis, here are some potential outcomes for SHIB:
- Bullish Breakout: A breakout above the current consolidation phase could lead to a significant price increase, potentially reaching $0.00005470.
- Continued Consolidation: If the consolidation phase continues, SHIB may trade sideways, with a potential range between $0.00002000 and $0.00004000.
- Bearish Reversal: A failure to break out of the consolidation phase could lead to a bearish reversal, potentially dropping SHIB back to its August lows.
In conclusion, while a surge to $1 is unlikely, SHIB’s ongoing token burn, strong technicals, and potential bullish breakout make it an interesting cryptocurrency to watch. Investors should remain cautious and consider the potential risks and rewards before making any investment decisions.
Key Statistics
- SHIB price: $0.00002812
- 24-hour burn rate: 71,122,860 coins
- Total burnt coins: over 410 trillion
- Circulating supply: over 584 trillion
- Shibarium transactions: over 645 million
- Shibarium addresses: over 2.01 million
By examining the data and technical analysis, investors can make informed decisions about SHIB’s potential for growth and the likelihood of a strong bullish breakout.
