Following a seven-month correction period, the Shiba Inu price has initiated a sideways movement above the $0.0000123 level. This consolidation phase suggests a bottom-formation sentiment along with the potential for a reversal, especially as Quarter 4 tends to drive a significant rally in the crypto market. The burning question remains: can the expected recovery replicate the impressive 2021 rally and propel SHIB to reach the coveted $1 mark?
In 2021, the Shiba Inu price experienced an astounding surge of 45,000% from January to May. Subsequently, after a notable correction, the coin’s price soared by another 1,500%, culminating in an all-time high of $0.00008845 in October.
While a rally reminiscent of 2021 could deliver substantial gains to SHIB holders, achieving the $1 target seems highly improbable. This is primarily due to factors such as the enormous circulating supply of tokens, the unique context that drove the previous rally, and the sheer magnitude of growth required to reach such a milestone.
Despite the optimistic predictions for a potential surge of 45,000% from the current value of $0.0000154, the resulting value would only amount to around $0.00698, falling significantly short of the $1 benchmark.
In considering the likelihood of a repeat of the 2021 rally, factors such as the emergence of new meme-coins and competing cat-themed cryptocurrencies have altered the landscape. The rise of innovative tokens like Dogwifhat (WIF) and Bonk, as well as the growing popularity of cat-themed coins like Popcat and Mog coin, have diverted attention from Shiba Inu. Additionally, the evolving nature of the crypto market, increasingly focused on substance rather than mere hype, presents a challenging environment for a resurgence akin to the 2021 rally.
In conclusion, while the question lingers on whether Shiba Inu can reach $1 with a 2021-style rally, the prevailing circumstances, including the vast supply, rising competition, and evolving investor preferences, suggest that such a scenario is highly unlikely.
The original article can be found on CoinGape website.