Traders will be looking to see if Shiba Inu (SHIB), which shot to fame in 2021, can shake off its meme token status and return to all-time highs in 2022.
SHIB has remained among the top 20 cryptocurrencies by market capitalization for some time, aided by an increasing number of holders as more retail investors enter the market and discover the asset thanks to the asset’s large user base.
Furthermore, the coin has benefited from its widespread availability; Shiba Inu Coin can be purchased on the top ten cryptocurrency exchanges, including Binance, Coinbase, KuCoin, and Kraken.
CoinGate, Uphold, and VirgoCX, three of the cryptocurrency industry’s fastest-growing exchanges and crypto trading platforms, have also listed the asset.
Apart from that, the asset has begun to find real-world applications, such as being used as a form of payment in stores or through the development of a metaverse’Shiba Lands,’ non-fungible tokens (NFTs), and burning to reduce the quantity, among many other applications that have increased its viability and utility.
Market statistics for the Shiba Inu (SHIB).
According to CoinMarketCap statistics, SHIB is now number 14 by total market cap and is trading at $0.00003085, down 1.55 percent on the day and 2.11 percent in the last week.
The token now has a market valuation of $16.9 billion, but it’s still a long way from the $41 billion it reached on October 29, so it’s unclear whether SHIB will be able to return to those levels in 2022.
Traders want to see SHIB return to its October high of $0.00008, and many believe that continuous burn contributions will have a significant impact on reducing SHIB supply and hence increasing its price.
Between February 6 and February 8, the price of Shiba Inu increased by 57 percent, reaching a swing high of $0.0000351. When the four-hour demand zone of $0.0000274 to $0.0000289 was approached, consolidation began, resulting in lower highs.
It is required to first identify this barrier in order to determine the direction of SHIB. The bottom will be invalidated if the four-hour candlestick closes below $0.0000274, forcing a lower low to be created. This development must occur before a 15% correction to the $0.0000235 support level can occur.
The IntoTheBlock Global In/Out of the Money (GIOM) model backs up this short-term pessimistic prediction for meme token prices.
The next steady support level, according to this on-chain indication, is between $0.0000150 and $0.0000220, with a range of $0.0000150 to $0.0000220. Given that this transaction resulted in the acquisition of 502.58 trillion SHIB tokens by a total of 134,230 addresses.
If the price falls to the previously mentioned ranges, these holders are likely to gather even more tokens, and here is also where the SHIB is expected to form a base during a slump.
If, on the other hand, this scenario shows the bearish thesis erroneous, it indicates that the bulls are in charge and that Shiba Inu’s price will certainly rise over $0.00004.
Price forecast for SHIB in 2022
Finally, Scott Melker, a crypto trader and host of the podcast The Wolf Of All Streets, highlighted that holders of SHIB for more than a year had recently been growing their holdings in line with whale accumulation during the last month; he noted that:
Over the last 30 days, addresses that have been held for more than a year have raised their SHIB balance by around 32.48 percent. And it appears that institutional or whale appetite has suddenly increased.”
Large transactions worth more than $100,000, according to Melker, demonstrate the extent of institutional engagement on the blockchain.
He stated, “
“This week [February 7], the volume of these transactions climbed significantly, reaching a multi-month high. The overall transaction volume was $389.89 million, but what’s more significant is that this represents 81 percent of the total SHIB on-chain volume.”
Because of the growing popularity of cryptocurrencies in the market, SHIB could return to, or even surpass, its all-time highs in 2022.
SHIB made tremendous increases in 2021 when speculation became rampant, as the market saw a substantial level of speculative activity. Despite this, there is still the risk of significant price declines, especially considering the recent accumulation of SHIB whales in the market.
Despite this, as market sentiment gradually shifts back toward the bullish side, new users are expected to enter the crypto space in the coming years, and leading platforms such as Robinhood have yet to list SHIB, the meme coin has every chance of returning to previous highs this year, but this is still speculative at this point.
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