Shiba Inu (SHIB), the 17th largest cryptocurrency by market cap, has made notable progress since its modest beginnings as a meme coin.
Once dismissed as a speculative token with limited utility, SHIB has established itself in the cryptocurrency space through continuous development and strong community-driven efforts.
Investor interest in SHIB has recently been reignited by a sharp rise in the token’s burn rate. Millions of SHIB tokens have been permanently removed from circulation, fueling optimism about the potential impact of reduced supply alongside continued ecosystem advancements.
As these events unfold, investors are wondering if the meme coin can defy expectations and reach the ambitious milestone of $0.01 by 2025.
Shiba Inu’s Journey So Far
In 2024, Shiba Inu experienced a volatile journey in the cryptocurrency market. After a relatively flat start to the year, the token skyrocketed 259.30%, rising from $0.0000101 to a yearly high of $0.00003629.
However, this momentum was short-lived as SHIB retreated to $0.00001316 in September. SHIB, currently trading at $0.00002225, has seen a weekly drop of 7.5%, cutting its monthly returns by 11%. Despite the setback, the token boasts a notable 114% year-to-date (YTD) gain.
The expansion of the ecosystem
The launch of Shibarium, a layer 2 blockchain, has significantly improved its scalability and transaction efficiency. Shibarium’s rapid adoption is evident in its milestone of surpassing 700 million total transactions as of December 25, just months after its launch last summer.
This milestone accompanies several ecosystem updates, including a revamped user interface for better compatibility with wallets like MetaMask, Coinbase Wallet, and Trust Wallet.
To further enhance its appeal, the project has announced plans to develop a stablecoin pegged at $0.01, aiming to expand SHIB’s utility and expand its market presence.
Adding to the positive sentiment, the SHIB burning mechanism has gained significant momentum. On December 25 alone, 6.26 million SHIB tokens were permanently removed from circulation, representing a 97% increase in the burn rate. This aggressive reduction in supply has reinforced investor optimism, aligning with the classic economic principle of supply and demand.
The early launch of the TREAT token further adds to the bullish sentiment, with TREAT designed to serve as a reward token within the Shiba Inu ecosystem, offering multifaceted utility.
Technical analysis and market sentiment.
Shiba Inu is presenting mixed signals from a technical perspective, with recent indicators suggesting potential bullish momentum.
The TD Sequential indicator has issued a buy signal, hinting at a possible trend change. Analyst Ali Martinez has identified resistance at $0.000026, and SHIB will possibly target $0.000029 if buying pressure intensifies.
The TD Sequential indicator presented a buy signal on the daily chart #ShibaInu $SHIB, anticipating a bounce to $0.000026 or even $0.000029. pic.twitter.com/N2QZSs0nCl
– Ali (@ali_charts) December 24, 2024
Adding to the optimism, analyst Javon marks has highlighted SHIB’s bullish technical setup, suggesting that the token could rise to $0.000081 under favorable conditions. Such a move would represent a 3.33x increase, translating into a staggering 234% gain from its current levels, reinforcing a cautiously optimistic outlook for the token.
At the same time, market sentiment around SHIB remains cautiously optimistic, with notable activity from major investors and whales. These major whale movements suggest renewed interest from large investors.
However, data retrieved by Finbold from on-chain crypto analysis platform IntoTheBlock on December 25 shows that 55% of Shiba Inu holders are in profit, 8% are in balance, and 37% are in loss.
This distribution highlights the potential for increased selling pressure, as profitable holders may look to capitalize on their gains, while those in balance or at losses may choose to hold amid market uncertainties.
The road to 1 cent
While Shiba Inu’s ecosystem developments and technical indicators are promising, reaching $0.01 by 2025 remains an extremely ambitious goal. Significant ecosystem advancements, increased adoption, and a strong bull market will be essential to achieving that goal.
For now, SHIB’s realistic milestones focus on breaking resistance levels like $0.000026 and $0.000029, and long-term growth depends on the sustained efforts of its community and developers.
Investors should proceed cautiously, balancing the speculative nature of the coin with its evolving ecosystem.
Featured image via Shutterstock
