For the Shiba Inu price to reach $1, several key factors must align perfectly. This price milestone would require substantial changes in market conditions that would propel it to new heights. The SHIB price at $1 dream could be in jeopardy as one analyst said the “path to $1 is highly improbable” due to several factors.
SHIB price is trading at $0.00001682, down 1.4% in the last 24 hours. This happens as Bitcoin price trades just below $68,000, pulling the entire crypto market down 1.2% to around $2.4 trillion.
What Would It Take For Shiba Inu Price To Hit $1
Crypto analyst InvestingHaven has thrown cold water on the chances of SHIB achieving $1. He said it is “highly improbable” for the trending meme coin to reach $1 price. Giving several reasons, the analyst explained why this ambitious target would necessitate a series of significant developments and crypto market shifts, which currently, have low chances of happening.
- Huge Shiba Inu supply and market cap puts pressure on the price to remain low.
- Global SHIB adoption rate is not happening fast enough to propel it to $1.
- Market speculation is not bullish enough to sustain the SHIB price rally to a dollar.
1. Shiba Inu Market Cap and Supply Burns
One of the most daunting challenges for the SHIB price to reach $1 is the required market cap. At its current supply, SHIB would need a market cap of approximately $589 trillion. To put this into perspective, this figure is several times larger than the entire global economy, which sits at $91 trillion as of September 2024.
Therefore, reducing the circulating supply through substantial and consistent SHIB burns is essential. These burns would need to be on a massive scale to make a meaningful impact on the token’s price.
2. Global SHIB Adoption and Real Use Cases
For SHIB to achieve such a high valuation, it must also see widespread global adoption and the development of real-world use cases. This means that SHIB would need to be integrated into various financial systems and accepted as a legitimate form of payment by businesses and consumers worldwide.
The last time Shiba Inu recorded notable adoption rates was in July 2024, when it jumped 36% and transaction count surged 150%. During that period SHIB price rose more than 56% in about two weeks. The crypto asset would need to move beyond being a speculative asset and become a functional part of the global economy if the SHIB $1 price target is to be achieved.
3. Speculation and Market Sentiment
While speculation has driven much of SHIB’s price action to date, it is unlikely to sustain a $1 price point. The crypto market is highly volatile, and speculative bubbles can burst as quickly as they form.
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— Shiba Inu (@ShibainuCoin) September 29, 2024
Data from Coinglass Liquidation Map (LM) shows the 30-day trading volume is largely dominated by Shorts than Longs. This imbalance suggests that bearish sentiment currently dominates the SHIB market as traders anticipate further lows from the meme coin in the future.
For SHIB to maintain a high valuation, it would need to withstand intense scrutiny from regulators and the broader financial community. This scrutiny could lead to increased regulation, which might impact the token’s price and adoption negatively.
SHIB Price Analysis Reveals 71% Breakout Inbound
Shiba Inu price forecast shows the asset recently broke a long-term downtrend line, signaling a potential shift toward a bullish trend. Currently, SHIB is moving sideways, with some signs of consolidation above the 0.618 Fibonacci retracement level, suggesting accumulation.
SHIB price sports key resistance levels around $0.00001811 and $0.00002737, while on the flip side, there is an immediate support level around $0.00001592 and $0.00001436.
There is a bull flag almost completing whose breakout could spur Shiba Inu price 71% to $0.00003288. If bears push the price below $0.00001592, it could signal market weakness, leading to an invalidation of the current bullish thesis,
Given the current market conditions and the factors outlined above, the path to $1 for SHIB is highly improbable. While $1 is unlikely to happen, SHIB price action remains bullish short term to midterm and could break out if BTC starts surging again.
The post What Would It Take for Shiba Inu Price to Hit $1? appeared first on CoinGape.
