As the pressure that the cryptocurrency market has been experiencing in 2022 continues to stagger its growth, its largest assets are no exception, including the meme dog token Shiba Inu (SHIB), leaving crypto traders and investors to wonder where the asset could be heading next.
How to reach $1
In 2021, SHIB’s rival Dogecoin (DOGE) came near the $1 price mark as it peaked at around $0.76, with a market cap of close to $100 billion. For Shiba Inu to reach the same market cap, in the best-case scenario, its price would need to soar nearly 90 times.
Considering the total circulating supply of 549,063,278,876,302 SHIB, if its price were to hit the coveted $1, the market capitalization would need to soar to $549.06 trillion, nearly seven times the market cap of the entire global market ($80.814 trillion), which is not likely to occur in the near future.
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That said, the only way for the token to reach $1 is through a massive token supply reduction. Currently, the supply reduction is achieved through regular burning, but even a burn rate spike of 2,350% on December 11, one of the largest recently, coupled with an increase in whale transactions, has failed to move the price of SHIB.
SHIB price analysis
Since the recent implosion of FTX, which used to be one of the largest crypto exchanges in the world, and the subsequent arrest of its CEO Sam Bankman-Fried, Shiba Inu has failed to hold above any of its major moving averages (MA).
On top of that, SHIB’s technical analysis (TA) on the 1-month gauges is bearish, residing in the ‘strong sell’ zone at 7, as summarized by the oscillators indicating ‘sell’ at 1 (as opposed to ‘neutral’ at 4 and ‘buy’ at 0) and moving averages suggesting ‘strong sell’ at 6 (as opposed to both ‘neutral’ and ‘buy’ at 0).
As things stand, Shiba Inu is currently changing hands at the price of $0.000008394, recording a decline of 3.65% on the day, 5.65% across the previous week, and 7.34% over the month, as demonstrated on the latest charts.
With a market capitalization of $4.61 billion, SHIB retains its position as the 15th-largest cryptocurrency by this indicator, according to the data retrieved by Finbold from the crypto tracking platform CoinMarketCap on December 20.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
