Speculation has been rife regarding the potential for Shiba Inu’s [SHIB] value to reach one dollar. While Ripple [XRP] has surpassed this mark and analysts are optimistic about Dogecoin [DOGE] achieving the milestone, the outlook for SHIB remains uncertain.
Considering SHIB’s total supply of $590 trillion, a $1 valuation seems improbable given its scale in relation to the global economy. Global wealth stood at $454 trillion in 2024, making it unlikely for a meme token like SHIB to exceed this magnitude in market capitalization. Despite this, if SHIB mirrors the trend seen with XRP’s recent surge, there might be potential for significant growth.
Prospects of Shiba Inu Coin Reaching $1
XRP experienced a notable surge, quadrupling in value after breaking out of a three-year compression triangle. SHIB, following a similar trajectory, appeared on the brink of breaking out of its four-year compression range.
In the event of a breakout, the projected target based on the triangle pattern would be $0.000114, implying a potential 265% increase. However, the medium-term targets for the breakout rally could settle around early 2024 highs at $0.000065.
The weekly Relative Strength Index (RSI) hinted at strong market momentum without signs of overheating. Historically, SHIB reached peaks in 2021 and early 2024 as the weekly RSI surpassed 80, indicating room for further growth based on past trends.
SHIB Supply Dynamics
The prevailing supply dynamics supported the notion that SHIB still had room for expansion. Data from Santiment revealed that SHIB’s supply did not experience the same selling pressure observed during the 2021 cycle peak, which stood at 220 trillion SHIB.
Since then, the selling pressure in terms of supply on exchanges has decreased to 144 trillion SHIB. With no noticeable uptick in exchange supply, SHIB appeared to have untapped growth potential.
While interest in the meme token surged, as indicated by a rise in active addresses, it had yet to reach the levels seen in early 2024 or 2021. Any increase in user participation could signal rising demand and potentially impact SHIB’s price positively.