Recently everyone is discussing whether the value of Shiba Inu [SHIB] can break through $1. XRP has already broken through $1, and analysts are also predicting that Dogecoin [DOGE] may reach this level.
So, can SHIB catch up with them? Judging from the ratio of market supply to total global assets, the $1 target seems difficult to achieve. The total supply of SHIB is as high as 590 trillion. To reach $1, its market value will reach 590 trillion.
By 2024, the total value of global assets is expected to be $454 trillion. It is almost impossible for a meme coin to exceed the size of global total assets. However, if SHIB can break through the years-long suppression range like XRP, it is still possible to usher in a larger increase.
Can the Shiba Inu reach $1?
XRP achieved a more than 4-fold increase by breaking through the 3-year suppression range. Now, SHIB is showing a similar trend and may break through its 4-year suppression range.
If Shiba Inu manages to break out of the current resistance range, its target price could reach $0.000114, according to the triangle pattern analysis, which means a potential increase of about 265%. However, the medium-term target in the short term could be the highs of early 2024, or the support near $0.000065.
Currently, the weekly RSI is close to the overbought area, indicating that the trend is very strong, but not yet overheated. In fact, when SHIB reached its local highs in 2021 and early 2024, the weekly RSI exceeded 80, which shows that at the current price level, SHIB still has a lot of room to rise.
Moreover, SHIB supply dynamics continue to influence market sentiment.
From the perspective of overall market supply, SHIB still has development potential. According to Santiment data, the current SHIB supply has not yet reached the level of the 2021 high (220 trillion SHIB), when the selling pressure was also more significant (red zone).
In contrast, the supply on exchanges has now dropped to 144 trillion SHIB, which means that the selling pressure has significantly decreased, providing favorable conditions for further increases.
At the same time, the market attention of meme coins is rising, which can be seen from the increase in the number of active addresses (white). Although the number of active addresses has not yet reached the peak in 2021 or early 2024, this growth trend may suggest that the demand for SHIB is gradually recovering, which is also expected to drive further price increases.
Taken together, both supply and demand factors create room for potential upside for SHIB, especially if selling pressure eases and user activity increases.
