- Will Shiba Inu coin reach $1? This seemed highly unlikely, given the total market supply.
- But gains of +200% could be likely if it breaks out of the 4-year range.
There has been a lot of noise about whether Shiba Inu (SHIB) the value could increase to as much as a dollar. Ripple (XRP) has crossed the $1 mark and analysts are confident Dogecoin (DOGE) will cross the threshold.
But can SHIB keep up with them? This is highly unlikely, given market supply relative to global wealth. Total SHIB supply is $590 trillion; a value of $1 would translate to $590 trillion.
In 2024, global wealth was estimated at $454 trillion. A memecoin surpassing global wealth in market size seemed unlikely. However, SHIB could reach high levels if it follows the XRP breakout trend.
Will Shiba Inu coin reach $1?
XRP rose more than 4 times after breaking through its 3-year compression triangle. SHIB followed a similar pattern and was almost out of its 4-year squeeze range.
Source: SHIB/USDT, TradingView
If so, the triangle-based breakout target would be $0.000114, representing a potential gain of approximately 265%. However, medium-term targets for the breakout rally would be early 2024 highs and $0.000065.
The weekly RSI flirted with overbought territory, suggesting the trend was strong but not overheated.
SHIB reached local highs in 2021 and early 2024 when the weekly RSI climbed above 80. This meant that SHIB had more room to grow based on historical trends.
Dynamics of the SHIB offer
Source: Santiment
The overall level of supply in the market also supported the view that SHIB had room to grow. According to Santiment, SHIB supply has not reached the selling pressure (red) seen at the peak of the 2021 cycle (220 trillion SHIB).
Since 2021, the selling pressure (offer on the stock exchanges) has fallen to 144,000 billion SHIB. With no increase in supply on the exchanges, SHIB had greater growth potential.
Read Shiba Inu (SHIB) Price Prediction 2024-2025
That said, interest in memecoin has been gaining momentum, as shown by the increase in the number of active addresses (in white).
However, it has not reached the levels of early 2024 or 2021, so an increase in users could signal an increase in demand and an overall impact on the price of SHIB.