- Will Shiba Inu coin reach $1? It seemed highly unlikely, given its total market supply.
- But +200% gains could be likely if it breaks from the 4-year range.
There has been a lot of buzz about whether Shiba Inu’s [SHIB] value could increase to a dollar. Ripple [XRP] crossed the $1 mark, and analysts are confident Dogecoin [DOGE] will hit the milestone.
But can SHIB follow them? It is highly unlikely, given its market supply relative to global wealth. SHIB’s total supply is $590 trillion; a $1 value would translate to $590 trillion.
As of 2024, global wealth was valued at $454 trillion. A memecoin surpassing global wealth in market size seemed unlikely. However, SHIB could hit high levels if it follows the XRP breakout trend.
Will Shiba Inu coin reach $1?
XRP rallied over 4x after breaking above its 3-year compression triangle. SHIB followed a similar pattern and was almost breaking out of its 4-year compression range.
Source: SHIB/USDT, TradingView
If so, the breakout target based on the triangle would be $0.000114, about 265% potential gains. However, the medium-term targets for the breakout rally would be early 2024 highs and $0.000065.
The weekly RSI flirted with the overbought territory, suggesting the trend was strong but not overheated.
SHIB hit local tops in 2021 and early 2024 when the weekly RSI climbed above 80. This meant that SHIB had more headroom to grow based on historical trends.
SHIB supply dynamics
Source: Santiment
The overall supply level in the market also supported the idea that SHIB had room for growth. According to Santiment, SHIB’s supply didn’t hit the selling pressure (red) seen in the 2021 cycle top (220 trillion SHIB).
Since 2021, the selling pressure (supply on exchanges) has declined to 144 trillion SHIB. With no uptick in supply on exchanges, SHIB had more growth potential.
Read Shiba Inu [SHIB] Price Prediction 2024-2025
That said, interest in the memecoin picked momentum, as shown by a spike in active addresses (white).
However, it hadn’t reached early 2024 or 2021 levels, so a spike in the number of users could signal increased demand and an overall impact on SHIB’s price.
