The idea of Shiba Inu reaching a $1 valuation has been widely discussed in cryptocurrency. Many investors speculate on the possibility, but a leading analyst on TradingView has presented a detailed evaluation that challenges this expectation. Using market data and technical analysis, the analyst explains why such a price target is unlikely and outlines key factors affecting SHIB’s future.
The Market Cap Challenge: Why $1 Is Unfeasible
The sheer volume of SHIB in circulation creates a significant hurdle for the coin to reach $1. To reach $1, the token’s market cap would need to increase to $589 trillion, says the analyst.
To provide context, gold is valued as one of the world’s most precious assets, with a total market cap of only $19 trillion. In comparison, Bitcoin, the top cryptocurrency, has a market cap of around $1.66 trillion. The analyst points out that anticipating SHIB to attain a valuation far exceeding these established assets is unrealistic.
Given these figures, the analyst argues that discussions of SHIB hitting $1 mislead investors. While some sources, such as Telegaon, have projected this price level by 2050, even their optimistic outlook assumes a Bitcoin price of $5.2 million per coin, with a total crypto market cap of $109.45 trillion. This would still be significantly lower than the $589 trillion required for SHIB to hit $1 unless its supply is drastically reduced.
Bitcoin’s Market Influence and SHIB’s Price Volatility
Beyond the issue of market cap, the analyst examines Bitcoin’s role in SHIB’s price trends. Historically, altcoins like SHIB experience downward pressure when Bitcoin declines, particularly during increasing Bitcoin dominance.
With Bitcoin currently facing a potential downturn, the analyst suggests that SHIB could see further price declines. This is a common trend in the crypto market, as investors often shift funds into Bitcoin during uncertain periods, reducing demand for altcoins. As a result, SHIB holders could face continued losses if Bitcoin’s price weakens further.
Technical Analysis
Technically speaking, SHIB’s price action is displaying worrisome patterns, according to the analyst. The formation of a double-top pattern on the weekly chart signals a bearish trend. After reaching a December 2024 peak of $0.00003279, the token failed to break a critical resistance level and dropped to a key support at $0.00001296.
A break below this support level could lead to further losses, with the analyst warning of a potential decline to $0.0000067 if selling pressure continues. As of now, SHIB has already lost the $0.00001296 support and has fallen to $0.00001266, bringing it close to adding an extra decimal place to its value.
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Despite SHIB’s widespread adoption, the analyst remains skeptical about its long-term value. He asserts that the token is primarily a meme coin with limited real-world utility. Due to this, he avoids investing in the asset and advises traders to consider alternative cryptocurrencies with stronger fundamentals.
For those still interested in the token, he recommends exiting positions if the price falls below $0.00001296 to mitigate potential losses, however, the token has already dropped below this level. Instead of chasing speculative targets, he suggests investors focus on low-cap assets with higher growth potential.
Current Market Performance
At the time of writing, the asset is trading at $0.00001267, reflecting a 3.87% decline over the past 30 days. This year alone, the token’s value has plummeted 58%, fueling concerns about its long-term survival.
While the idea of SHIB reaching $1 continues to fuel speculation, the data suggests expectations are overly optimistic. Investors should carefully assess market fundamentals before making decisions based on price predictions that lack feasibility.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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