How High Can Shiba Inu (SHIB) Go in 2024?

Shiba Inu (SHIB) took the crypto world by storm in 2021, with its meme-fueled popularity propelling it to astronomical heights. But many are asking: How high can Shiba Inu go in 2024? Can it recapture its former glory and reach even greater heights, or is it destined to remain a fleeting trend? 

In this blog, we delve into price predictions, key market influences, and potential roadblocks to uncover the possible trajectory of SHIB in the coming year. So, buckle up, SHIBArmy, as we embark on a journey to answer the burning question.

Uncovering potential highs for Shiba Inu in 2024

Adopting a comprehensive approach is crucial to grasping the potential future of the memecoin. So, we’ll delve into the market dynamics and observed price trends of SHIB, offering insights into its performance and prospects.

SHIB technical analysis: Can the bulls hold on?

SHIB’s weekly chart over the past year painted a picture of a cryptocurrency grappling with bearish pressure. However, bulls were not entirely absent from the market. It all began in February 2023, when the price was rejected from a peak resistance at $0.000014. This triggered a series of declines.

A number of bullish rallies were observed throughout the year. However, a significant barrier for these rallies was established at $0.000010. According to data from CoinMarketCap, SHIB’s value depreciated by approximately 22% over the last year, marking a significant downturn.

Notably, since October 2023, there has been a slight bullish momentum in the market. Entering the new year, the price trajectory of SHIB has hovered close to its current support level of $0.0000087.

At the time of analysis, SHIB was trading at $0.0000095. But all is not bad for SHIB. Over the past seven days, the token has appreciated by around 8%, with a moderate 0.2% increase over the last 24 hours. This recent performance suggests a tentative recovery in the short term.

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Indicator insights of SHIB

The Relative Strength Index (RSI) fell below the 50 line towards the end of February 2023. In August, it reached as high as 55.58 but quickly retracted. It crossed above the 50 line again in November, aligning with price movements, and reached a peak of 64.19 in mid-December as the price re-tested its resistance at $0.000010. 

However, following the price’s rejection, the RSI also fell. There was a brief period at the end of January when it dipped below 50, but it has since recovered to its current value of 54.58, indicating that bullish momentum is still present in the market and that bulls are fighting to keep their gains.

The Chaikin Money Flow (CMF) moved into negative territory between June and September, indicating selling pressure. However, there was a temporary move above the zero line in August, and since October, it has risen continuously. As the analysis concluded, it stood at 0.19, suggesting a shift towards bullish sentiment, albeit within a volatile market context.

The trading volume, reflecting market dynamics, decreased significantly amid increased bearish influence. However, recoveries in volume were observed coinciding with bullish activity, indicating active engagement from traders during these periods. However, since January, the volume has remained on the downside, reflecting the ongoing challenges.

Shiba Inu price prediction for 2024

The current support level is closely monitored by bears, and although there have been moments when the price momentarily dipped below this threshold, bulls have successfully maintained it. The most bearish scenario could see SHIB’s price falling to as low as $0.0000056. Despite this potential downside, the general sentiment within the industry and market remains optimistic regarding SHIB’s performance, suggesting a belief in the token’s resilience and potential for recovery.

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Market position

Shiba Inu occupies a notable place in the cryptocurrency market. It is the second-largest meme coin and ranks among the top 20 cryptocurrencies in terms of market capitalization. This suggests that SHIB has gained significant attention and adoption among investors and traders.

In the past 24 hours, it has experienced a trading volume of $146 million. SHIB’s fully diluted market capitalization is approximately $5.6 billion, underscoring its substantial market valuation. At the time of writing, 589.3 trillion tokens were in circulation out of a total supply of 1 quadrillion tokens.

Potential catalysts for SHIB’s growth

The potential growth of Shiba Inu in 2024 could be influenced by several factors, as follows: 

• Popularity and holder base: SHIB has a substantial holder base, with more than 1.3 million addresses, as per the Shibarium explorer. This highlights its widespread appeal. Moreover, combined with its low unit price, this creates a psychological incentive that could encourage further adoption.
• Low-interest rates: With expectations of Federal Reserve rate cuts, lower interest rates could make speculative assets like SHIB more attractive to investors.
• Ecosystem developments: Projects such as the Shibarium Layer-2 solution for faster transactions and SHIB: The Metaverse, are expected to contribute more to the token’s growth.
• Activity in the memecoin sector: The performance of other memecoins like Bonk (BONK) or Dogecoin (DOGE) might influence the broader meme coin market and SHIB’s standing within it.
• Broader crypto market growth: Expansion in the broader crypto market, possibly spurred by Bitcoin halving or the introduction of more crypto exchange-traded funds (ETFs), could positively influence memecoins, including SHIB.
• Token burn: To date, a total of 410,708,398,063,320 tokens have been burnt from the initial supply. This scarcity, if accompanied by constant or rising demand, can lead to an increase in the token’s value.

Understand the impact of the SHIB burn mechanism on its market value by exploring our comprehensive guide on how the Shiba Inu burn works.

Challenges and limitations

Memecoins like Shiba Inu face several inherent limitations and challenges that can impact their viability and growth potential in the cryptocurrency market. 

• Competition from established cryptocurrencies: Memecoins compete for market share and investor attention with established cryptocurrencies that offer more robust technologies, security, and use cases, making it difficult for them to gain and maintain traction.
• Impact of market manipulation: The markets for memecoins can be easily manipulated due to their lower market capitalization and the influence of social media. This can lead to pump-and-dump schemes that can harm unsuspecting investors.
• Market saturation: The proliferation of memecoins following Dogecoin’s success created a crowded market, making it hard for any single project to stand out amidst the competition.
• Security risks: As with all cryptocurrencies, memecoins are susceptible to security risks, including hacking and fraud.
• Sustainability: The long-term sustainability of memecoins is uncertain. Many may not survive in the long run.
• Large circulating supply: The vast supply of tokens in projects like Shiba Inu dilutes individual token value, potentially misleading investors unfamiliar with market capitalization concepts.

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The takeaway

While price predictions provide valuable insights, it’s crucial to remember that the future of SHIB, like any cryptocurrency, is inherently unpredictable. This blog has equipped you with the knowledge and potential scenarios to formulate your own informed decisions. 

Remember, responsible investing requires thorough research, understanding your risk tolerance, and never investing more than you can afford to lose. Whether you’re a seasoned SHIB holder or a curious newcomer, let this be a guiding light as you navigate the exciting yet uncertain terrain of Shiba Inu’s future in 2024. So, chart your own course, make informed choices, and most importantly, stay tuned for the thrilling ride that awaits the SHIBArmy!

Disclaimer: This blog represents the author’s personal opinions and should not be taken as financial advice. Please consult a qualified financial advisor and evaluate your individual circumstances and risk tolerance before making investment decisions.