Shiba Inu (SHIB) Price Stabilizes Ahead of Shibarium Launch, Eyes 83,000% Surge to $0.01

Shiba Inu's 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.

Shiba Inu (SHIB) price has shown signs of stabilization in the past few days as the recent crash eases.

The SHIB coin was trading at $0.00001285 on Monday, up slightly from the year-to-date low of $0.00001085. It remains at a level that was last seen in November last year.

However, the SHIB price is still down about 62% from its highest point last November. The crash has seen Shiba Inu’s market cap fall from $19 billion in November to $7.5 billion.

Pundit Explains Why Shiba Inu Price Will Hit $0.01

Crypto analyst Ben Speaks has explained why he believes that the SHIB price could surge from the current $0.000012 to $0.01.

This would represent an 83,000% surge from the current level. In a note, Speaks said that Shiba Inu’s price will be a better performer than Bitcoin over time. He cited several factors like its deflation, its utility, and its 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.

Shiba Inu, on the other hand, 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%. This jump happened as one address moved 1 billion tokens on Sunday. Token burns are highly deflationary in that they reduce the number of tokens in circulation.

The analyst also cited Shiba Inu’s utility since it has already launched Shibarium, a layer-2 network. A layer-2 network is a secondary framework or protocol that is built on top of an existing blockchain to improve its 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.

“People still don’t get it…Bitcoin could hit $1M and that’s only a 1,090% gain from $84K.That’s a 10x if you’re lucky—and only if you had big capital to begin with.Now look at $SHIB:Deflationary supply (burns happening DAILY)Shibarium L2 scaling liveReal utility: AI, metaverse… Plenty to 12x-15x from here.”

Another bullish catalyst for the Shiba Inu price is the Mean Dollar Invested Age (MDIA), which has continued rising. This MDIA indicator is used to measure the average amount of time that investors have remained invested in an asset. A high reading is a bullish sign.

The chart shows that the indicator has risen to 82, up from the year-to-date low of 39. This means that investors are becoming less volatile and are focused on long-term gains.

Shiba Inu Price Short-Term Forecast

The daily chart shows that the SHIB price crashed to a low of $0.00001085 earlier this month. It has since formed a bullish divergence pattern as the Percentage Price Oscillator (PPO) and the Relative Strength Index (RSI) have begun tilting upwards.

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.

From this analysis, the Shiba Inu price will likely bounce back and possibly retest the key resistance point at $0.00001855, its lowest swing on December 20. A drop below $0.00001085 will invalidate this bullish outlook.