Shiba Inu (SHIB), one of the most popular Ethereum-based ERC-20 tokens and the second largest dog-inspired meme coin by market capitalization after Dogecoin, has come off the boil on Monday. SHIB/USD was last changing hands just over 3.5% lower on Monday in the mid-$0.000011s, now down about 10% from earlier monthly peaks near the $0.000013 level.
Broad downside in crypto markets and across risk assets in the traditional finance space amid caution ahead of a massive week of macro risk events (including Fed, ECB and BoE meetings plus US jobs, ISM and Consumer Confidence data) is the main factor weighing on SHIB on Monday.
But the crypto token is still on course to have gained a massive more than 43% this month, which would be its best month since October 2021, when it rocketed a stunning 830% higher.
Where Next For SHIB?
Since Shiba Inu’s break above its 200-Day Simple Moving Average (SMA) earlier this month – the first sustained break above this level since 2021 – the bulls have been getting louder. However, they should beware that, earlier this month, SHIB saw a significant bearish technical development.
SHIB/USD confirmed a downtrend linking the August, October 2022 and January 2023 highs, which suggests the cryptocurrency’s near-term bias could be to the downside.
If this week’s macro events weigh on crypto (say the Fed comes across as much more hawkish than expected), then SHIB traders should watch for how the crypto token reacts to the $0.000011 support area. A break below here could open the door to a return under $0.000010.
Crypto Experts Give Their SHIB Price Predictions
According to Cryptonews.com analyst John Isige, a break above the above noted chart pattern would open the door to a test of the October and August peaks at the $0.000015 and $0.000018 levels respectively.
Isige highlights data from IntoTheBlock showing that “there are more SHIB tokens with unrealized profit than those experiencing unrealized losses and at the break-even point combined”.
According to Isige, IntoTheBlock’s IOMAP model “shows that investors would be willing to back a Shiba Inu price rally as opposed to selling the token, especially with the launch of the Shibarium protocol on the horizon”.
For reference, the IOMAP model at the end of last week showed that 69.95% of the SHIB token supply is “in the money” (i.e. sitting on an unrealized profit), while 27.15% was out of the money and about 3.2% at the breakeven point.
In the longer term and based on expectations that Shiba Inu’s developers will continue to boost the coin’s utility via the expansion of the Shiba Inu web3 ecosystem, analysts at Business 2 Community are bullish on SHIB in 2023. “The asset will be a critical part of the Shibaverse and ShibaSwap, and these use cases could help drive it to $0.000040,” they argue, a roughly 250% rally from current levels.
“With Shiba Inu’s developers still working on their Metaverse and decentralized exchange, and Shiba Inu’s community expected to grow even further, we estimate that the SHIB price could cross $0.0001 by the end of 2025,” they add.
Is It Too Late to Buy Shiba Inu (SHIB)?
Asking whether it’s too late to buy an asset is never the right question. The answer is always never. The right question is whether an asset should be bought or not. And that depends on how an investor judges its long-term price performance outlook.
If you deem SHIB as likely to rise substantially in price in the current years, based on your own research, it is probably worth buying some. If not, then stay away.
