Shiba Inu (SHIB) currently trades at $0.00002148, reflecting a 5.07% rise in the past 24 hours, lifting its market capitalization to $12.65 billion.
Despite this short-term rally, the token has experienced a 21.80% decline over the past month and remains down 10.67% over the past week.
Once heralded for briefly entering the top 10 cryptocurrencies by market cap in 2024, SHIB appears to have entered a corrective phase. Its 2024 high of $0.000035 marked a peak in speculative fervor, but after climbing back to $0.000032 in December, the token now seems more likely to breach the $0.00002 threshold than reclaim the $0.00003 mark, absent a significant shift in sentiment or market catalysts.
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One of the challenges facing SHIB is the rapid rise of competing meme tokens such as WIF, PEPE, Fartcoin, PudgyPenguin, and PNUT. Many of these tokens, while sharing the meme-like branding that defined SHIB’s early success, have adopted distinctive narratives or offered specific incentives that appeal to niche communities.
Key technical aevels and AI predictions
To assess Shiba Inu’s near-term trajectory, Finbold consulted PricePredictions, a platform that leverages an advanced machine learning algorithm incorporating a range of technical indicators. These include moving average convergence divergence (MACD) to measure trend strength, the relative strength index (RSI) to gauge whether the asset is overbought or oversold, and Bollinger bands to track volatility and price deviations.
According to PricePredictions, SHIB is expected to trade at $0.00002158 by the end of the month.
The tokens has a key support level at $0.00001923 and should the token fail to hold this level, further downside could ensue as traders exit positions, anticipating deeper corrections.
Resistance is seen at $0.00002286, a price ceiling that SHIB has struggled to break decisively amid market uncertainty. Until the token consolidates or crosses this resistance, sentiment is likely to remain cautious.
Analysts weigh in on SHIB
Market analysts remain divided on Shiba Inu’s future trajectory. Prominent analyst Alan Santana recently reinforced his bullish outlook, stating:
“Shiba Inu’s chart and bullish bias remain intact. We had six days of bearish action that changed nothing for the bigger picture… SHIB’s long-term trajectory is upward.” Santana highlighted the token’s series of higher highs and higher lows, framing the recent price movements as part of a healthy consolidation phase preceding what he described as “the strongest advance in four years.” He boldly predicted that SHIB would not only reach its previous all-time high but break beyond it.
However, this optimistic forecast seems increasingly at odds with current market dynamics. SHIB’s peak price of $0.00008616 in October 2021 coincided with an all-time high market cap of $42.25 billion—a period fueled by retail-driven euphoria and minimal macroeconomic headwinds.
Today, with a total supply of 589.5 trillion SHIB and a circulating supply of 589.25 trillion SHIB, surpassing such heights would require a seismic increase in demand or a radical reduction in supply.
For SHIB to reach $0.00008616 (its 2021 all-time high price) with the current supply, the market cap would need to be approximately $50.77 billion, which is indeed higher than the 2021 market cap of $42.25 billion (circulating supply of 549 trillion SHIB).
Since market cap is the circulating supply multiplied by the price, an increase in price to $0.00008616 would require billions of dollars in new investment.
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