If Shiba Inu's daily trading volume reaches $50 billion, and most of it leans towards buyers, then it could reach new heights.
Shiba Inu's (SHIB) price fluctuations often catch the market by surprise. Its most significant historical surge occurred during the 2020/2021 bull market when its price rose from $12 to $1 million.
Although SHIB has retreated from its historical high of $0.00008845, experts believe it can recover to that price level. To achieve this, Shiba Inu needs to attract huge demand, which will lead to a surge in trading volume.
Shiba Inu price reaches $50 billion
Trading volume alone does not guarantee a price increase. If the trading volume includes a majority of sell activities, the impact on price may be neutral or even negative. Market sentiment needs to be bullish for a trading volume of $50 billion to translate into significant price increases.
For example, from November 5 to 16, a majority of SHIB's trading volume represented buying activity, leading to a recent price increase. IntoTheBlock shows that on November 16 alone, large participants purchased 4.72 trillion SHIB, while shorts sold 4.52 trillion tokens. This indicates an excess demand of 201 trillion SHIB.
Historically, there has been a strong correlation between Shiba Inu's trading volume and price increases. During the rebound in October 2021, trading volume exceeded $30 billion, driving its price to a historical high of $0.000088. CoinMarketCap data confirms that SHIB's trading volume on October 27, 2021, was $39 billion, while on October 28, 2021, it was $32.8 billion.
After this period of heightened market interest, Shiba Inu's trading volume declined as prices fell. Notably, SHIB's 24-hour trading volume has been between $200 million and $500 million since then.
If trading volume reaches $50 billion, the price may return to or even exceed these levels. Analysts believe such a scale of daily trading volume could push SHIB to a resistance level of $0.00005 or higher, with optimistic predictions placing SHIB's target at $0.00015 under suitable market conditions.
Can Shiba Inu's sales reach $50 billion?
Interestingly, the trend of surging trading volume leading to price spikes has repeated this year, with Shiba Inu's trading volume soaring to $8.96 billion in early March 2024, as the meme coin broke through the $0.00003 level. On March 5, SHIB hit an annual peak of $0.000045, with trading volume soaring to $16 billion that day.
However, while a trading volume of $50 billion could lead to huge demand for SHIB, reaching this level may be challenging. Currently, Shiba Inu's trading volume is at $1.18 billion. This figure needs to surge by 4,137% to reach the $50 billion mark.
If this happens, market trends will be key in determining the impact of such high trading volume. Increased liquidity could attract institutional and retail investors, generating more buying pressure. Meanwhile, Shiba Inu's token burn plan may amplify this effect.
