The Shiba Inu price has stabilized in the past few days as the recent crash has eased. The SHIB coin was trading at $0.00001285 on Monday, up from the year-to-date low of $0.00001085. It remains about 62% below its highest point in November last year. This crash has pushed its market cap from $19 billion in November to $7.5 billion.
Pundit Explains Why Shiba Inu Price Will Hit $0.01
A crypto analyst has explained why the SHIB price could surge from the current $0.000012 to $0.01, representing an 83,000% surge from the current level.
In a note, an analyst said that Shiba Inu’s price will be a better performer than Bitcoin over time. He cited several factors, such as its deflation, utility, and global partnerships.
Bitcoin continues to experience annual inflation due to the ongoing mining of new coins each day. On the positive side, this inflation has been in a downtrend over the past few years, particularly following the halving event.
On the other hand, Shiba Inu is a deflationary coin with a total supply exceeding 589 trillion. It has daily token burns, a trend that may continue in the coming months. For example, the 24-hour Shiba Inu burn rate rose by approximately 37,000%, as one address moved 1 billion tokens on Sunday. Token burns are highly deflationary in reducing the number of tokens in circulation.
The analyst also cited Shiba Inu’s utility since it launched Shibarium, a layer-2 network. A layer-2 network is a secondary framework or protocol built on top of an existing blockchain to improve scalability and efficiency. The goal is for Shiba Inu to transition from a mere meme coin to a utility token. Part of the BONE tokens made from Shibarium are converted into SHIB and incinerated. The challenge, however, is that the Shibarium ecosystem remains weak.
Another bullish catalyst for the Shiba Inu price is the Mean Dollar Invested Age (MDIA), which has continued rising. This MDIA indicator has risen to 82, up from the year-to-date low of 39.
READ MORE: Shiba Inu Price Prediction: SHIB Eyes a 150% Surge
Shiba Inu Price Short-Term Forecast
The daily chart shows that the SHIB price crashed to a low of $0.00001085 earlier this month. As the Percentage Price Oscillator (PPO) and the Relative Strength Index (RSI) have tilted upwards, the price has formed a bullish divergence pattern.
Further, the coin has formed a falling wedge pattern, a popular bullish sign. This pattern is made up of two descending and converging trendlines. It has now moved slightly above the upper side of the wedge. The coin also formed a quadruple bottom at $0.00001235.
Therefore, Shiba Inu’s price will likely bounce back and possibly retest the key resistance point at $0.00001855, its lowest swing on December 20, up 45% from the current level. A drop below $0.00001085 will invalidate this bullish outlook.
READ MORE: Shiba Inu Price Prepares Massive Surge: But Will Never Hit $1
