As the crypto market faces turbulent times, Shiba Inu (SHIB) has not been spared. The popular meme coin has seen a dip of up to 10.5%. Despite this setback, SHIB remains a favorite within the crypto community due to its potential for extraordinary gains. Interestingly, a well-known trader has predicted that SHIB could achieve an astonishing 44,000% rally under certain conditions.
Memecoins To Lead The Market
A former IBM blockchain team member and crypto analyst has forecasted that Shiba Inu might be on the brink of a 44,000% bull run. This prediction is based on historical performance, where SHIB experienced a similar upswing upon its initial launch.
Trader’s Insight
The trader shared insights on Twitter, noting that SHIB’s first significant move was a 44,000% increase. If SHIB price breaks out of its long-term consolidation phase, it could potentially reach a 2.618 Fibonacci level, translating to another 44,000% rise from its current price. The trader believes that meme coins could spearhead the next bullish cycle in the crypto market.
This historical performance hints at what might happen if SHIB breaks out of its current prolonged consolidation zone. A 44,000% increase from its current price would propel SHIB to $0.00726. Meme coins, known for their high volatility and strong community support, often exhibit a viral nature that can lead to rapid price movements. The combination of technical patterns and community enthusiasm makes Shiba Inu a coin to watch closely.
Is It Possible For Shiba Inu To Surge 44,000%?
Currently, Shiba Inu boasts a market cap of $9.7 billion. A 44,000% price increase would see its market cap swell by 440 times, reaching a staggering $4.268 trillion valuation. However, SHIB’s market cap is only 0.42% of the entire crypto market. For SHIB to achieve a $4 trillion market cap, the total crypto industry value would need to grow to an astronomical $1 quadrillion. In such a scenario, Bitcoin’s market cap would be $542 trillion, and its price would soar to approximately $27 million. Given that the total global money supply is only $89 trillion, these figures seem unrealistic.
Burn Rate and Market Cap Dynamics
While a $4 trillion market cap may be unattainable, a 44,000% price increase is conceivable if the SHIB burn rate intensifies. The challenge lies in Shiba Inu’s massive circulation of over 589 trillion tokens. If this number were significantly reduced, SHIB’s price could easily surge 440 times without disrupting the global money market supply. According to the ShibBurn platform, the burn rate has dropped by 92% in the last 24 hours.
Epic Rally Imminent?
Shiba Inu gained prominence following its meteoric rise in 2021. As October begins, a month traditionally bullish for cryptocurrencies, experts are hopeful for another price surge for SHIB. Historically, SHIB recorded a dramatic price increase, rising by 43% in just nine days. This rally was fueled by a notable increase in on-chain activity compared to other altcoins and meme coins. Additionally, SHIB’s trading volume soared to a whopping 1.19 billion.
Current Market Sentiment
While the current bullish outlook appears favorable, the likelihood of a local price top has increased due to heightened hype. Traders and investors should closely monitor SHIB’s performance, as meme coins like Shiba Inu often exhibit unpredictable price movements influenced by community enthusiasm and market sentiment.
