Shiba Inu [SHIB] price prediction: Will it reach 1 cent? Keep an eye on these TWO factors!

At present, market analysts are primarily focused on forecasting future price targets for various cryptocurrencies, considering their volatile nature and the influence of broader market trends on their performance.

Shiba Inu [SHIB] is no different. With an optimistic outlook for the first quarter, driven by the expectations of Bitcoin reaching new highs, industry experts are deliberating on the long-term price prospects for SHIB.

Could Shiba Inu Surpass the 1 Cent Mark Soon?

An examination of SHIB’s daily chart provides a clear indication of the prevailing bullish sentiment. Following a phase of consolidation, SHIB witnessed a significant uptrend, characterized by a sequence of consecutive upward candlesticks.

A minor correction was inevitable after a sharp 27% spike in a single day. Nevertheless, despite some profit-taking, the bulls swiftly regained control, thus preventing a major downturn. This resilience is particularly advantageous for SHIB, given its status as a memecoin.

Currently priced at $0.00003030 (at the time of this article), SHIB appeared to be approaching its previous resistance level from late March, emphasizing the critical importance of the upcoming days in determining its short-term trajectory. A successful breach of this level could indicate further upward momentum, while a failure might lead to a pullback.

In the broader picture, however, the journey for Shiba Inu to reach the 1 cent milestone will require more than just sporadic price fluctuations on a daily basis.

With a significant volume of over 580 trillion SHIB tokens held in the wallets of large investors, their impact on SHIB’s price trajectory remains substantial.

Interestingly, the interest from these major holders in SHIB had been relatively flat for half a year until a recent surge attributed to the “Trump pump.” This sudden spike in whale activity underscored the strategic timing of their positions.

Thus, unless there is a sweeping shift towards extreme greed in market sentiment, the likelihood of substantial accumulation by whales appears slim. This scenario could cast uncertainty over Shiba Inu’s ability to reach the one-cent target in the near term.

Understanding SHIB’s Potential Through Fundamental Psychology

Meme coins like SHIB heavily rely on speculation, making them susceptible to drastic price fluctuations. While internal initiatives by SHIB—such as token burns, community projects, and DAO proposals—contribute to generating enthusiasm, external factors hold greater sway over its future direction.

The involvement of whales significantly influences SHIB’s price movements. These large stakeholders with considerable holdings wield the power to sway the market, often overshadowing community-driven initiatives that fuel short-term excitement.

For SHIB to secure its long-term viability, two primary factors come into play: a surge in interest from major hodlers or a potential crisis concerning Bitcoin that compels investors to rebalance their portfolios, possibly including meme coins, for quick profits.

Consider the ongoing scenario—while Bitcoin has been grappling with maintaining its peak of $104k, SHIB has been riding a tide of increased whale activity, consistently recording daily gains exceeding 5% and resisting significant pullbacks.

This underscores the significant impact that external factors—particularly whales—exert on SHIB’s price movements. Thus, unless SHIB establishes a more decentralized support network, the timeline for reaching the coveted 1 cent milestone remains uncertain.