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Shiba Inu (SHIB) has captured the crypto community’s attention, particularly with discussions surrounding its potential trajectory in relation to XRP’s recent breakout.
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Despite impressive gains observed in other cryptocurrencies, the road ahead for SHIB remains complex, affected by its extensive market supply dynamics.
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“If SHIB can maintain its upward trajectory, analysts suggest targets could increase significantly,” according to COINOTAG analysis.
This article explores Shiba Inu’s potential price movements and supply dynamics, considering recent trends and market behavior.
Will Shiba Inu coin reach $1?
XRP recently experienced substantial gains, which raises questions about whether SHIB could replicate such success. XRP rallied over 4x after breaking above its 3-year compression triangle. SHIB is on a similar path, potentially breaking from its 4-year compression range.
Should SHIB mirror XRP’s breakout behavior, the targeted price based on the triangle formation could reach up to $0.000114, representing approximately 265% potential gains. With the weekly Relative Strength Index (RSI) suggesting strong momentum without being overbought, there is optimism regarding SHIB’s prospects.
Historically, SHIB has hit local peaks during times of high RSI readings, indicating further upside potential based on past performance patterns.
SHIB supply dynamics
The supply dynamics of SHIB are crucial in assessing its future price movements. Recent data from Santiment indicates that SHIB’s circulating supply did not experience the same selling pressure as seen during previous market peaks. The decline in supply on exchanges—dropping from 220 trillion SHIB during the 2021 top to 144 trillion SHIB currently—suggests a healthier market environment for growth.
Increased interest in SHIB is evidenced by a rise in active addresses, reflecting a growing user base. However, these levels have yet to match the surges experienced in early 2024 or 2021, indicating potential for further demand increases that could influence SHIB’s price positively.
Conclusion
While the prospect of Shiba Inu reaching $1 remains debatable due to its massive supply, the underlying market dynamics indicate room for significant price movement based on technical trends and supply constraints. Investors should keep a close watch on market developments and user engagement metrics to gauge SHIB’s potential in the evolving crypto landscape.
