Shiba coin price prediction: Will SHIB reach new highs?

The shiba inu cryptocurrency – the token of which is SHIB – has rocketed by more than 120% after a tweet by Tesla (TSLA) CEO Elon Musk on 4 October reignited interest in the coin.

The price had been range-bound after it collapsed from its peak in May, but it shot up as investors piled in, trading at $0.00002299 at the time of writing on 6 October.

So what is shiba inu all about, and what is the outlook for its price?

In this article, we take a look at the latest developments to help you decide whether to buy the shiba inu coin for your investment portfolio.

Shiba inu price soars in response to Musk tweet

The so-called “meme coin”, shiba inu, was launched in August 2020. It’s a play on the dogecoin (DOGE) meme, which is itself a parody on the cryptocurrency space. Coins themed around the Shiba Inu dog breed have gained popularity as investors look for the next bitcoin (BTC) to invest in.  

The shiba token attracted the attention of investors in May, when it spiked by 2,405% in three days to hit a peak of $0.0000388 on 10 May, in a rally caused by Elon Musk’s appearance on the Saturday Night Live television show. His appearance prompted a sell-off in DOGE as he referred to the cryptocurrency as a “hustle”, having talked it up in previous weeks. 

The shiba coin price quickly fell back and largely traded between $0.000006 and $0.000008 over the summer.

Prices of the shiba inu (SHIB), dogecoin (DOGE) and shiba floki (FLOKI) cryptocurrencies jumped after Elon Musk tweeted a photo of his Shiba Inu puppy in a Tesla on 4 October. That prompted #SHIB to start trending on the social media site, driving up trading activity and lifting the price.

The anonymous developers of shiba inu announced on 7 August that they had initiated a coin burn to reduce supply of SHIB in response to a request from the community. Digital coin burns destroy coins to remove them from circulation, slowing down the rate of inflation. 

SHIB developers added two new trading pools to the ShibaSwap decentralised coin exchange, Perlin and Ryoshi, and burned $25,000 in both SHIB and LEASH coins.

The developers have formed an ecosystem around the shiba inu coin, creating other tokens such as LEASH and BONE. ShibaSwap, which runs on the Ethereum blockchain, launched on 6 July. Burning coins to reduce the supply in circulation creates the potential for the price to move up further.

The developers are preparing to launch a collection of non-fungible tokens (NFTs) next week, which will contain 10,000 images of Shiboshi characters. They will initially only be available to purchase on ShibaSwap, with a secondary market on the OpenSea NFT platform. 

While the NFTs will be priced in LEASH and ether (ETH), buyers can name their Shiboshis for an additional fee of $100 paid in SHIB. The remaining funds will be burnt to the SHIB burn wallet.

There are currently 394,796 billion shiba inu coins in circulation, with the maximum supply set at one quadrillion, according to data from CoinMarketCap. That puts a lid on how far the price can run up. At a price of $0.00002299 at the time of writing on 6 October, shiba inu had a market capitalisation of $9m, making it the 20th-largest cryptocurrency.

As always, you should be aware that the past price performance is no guarantee of future returns.

So, what’s the outlook for shiba crypto after the rally? What do forecasts indicate for the remainder of 2021 and beyond?

Shiba coin price prediction: Will SHIB return to record highs?

The SHIB price remains well below its all-time high of $0.000038 on 10 May. Can the price gain another 110% to return to that level?

Technical analysis shows that short-term sentiment on SHIB is bullish, according to CoinCodex, with 24 indicators giving off bullish signals compared with five bearish signals. 

The daily simple and exponential moving averages from the three-day out to the 200-day were giving buy signals. The Relative Strength Index (RSI) was at 90.13, giving sell signals. The RSI moves between zero and 100, and is considered overbought above 70 and oversold below 30.

The SHIB crypto price prediction from WalletInvestor projects that the coin will trade between $0.000022 and $0.000027 in the next two weeks, then slide to $0.000011 by the end of the year. It predicts the price will double to $0.000021 by the end of 2022 and surpass the previous all-time high in 2023, to end the year at $0.000031. By the end of 2025, the algorithm predicts SHIB will be trading at $0.000058.

The shiba inu (SHIB/USD) forecast from DigitalCoin predicts that the price will average $$0.0000345254 in 2021, rising to an average of $0.0000440472 in 2022 and $0.0000477018 by 2023. The algorithm suggests the price will reach an average of $0.0000691664 by 2025.

For the longer term, the shiba inu coin price prediction for 2025–2030 from Coin Price Forecast suggests it could remain volatile, falling from $0.00012382 at the end of 2025 to $0.00010622 in 2026, then it will climb to $0.00013775 by the end of 2028 before dropping back to $0.00012314 in 2030.

PricePrediction is more bullish on the long-term outlook, projecting the price will reach an average of $0.00006558 in 2025 and climb to $0.00044574 by 2030.

It’s important to keep in mind that cryptocurrency markets remain extremely volatile, making it difficult to predict accurately what a coin’s price will be in a few hours, and even harder to give accurate long-term estimates. As such, analysts and online forecasting sites can get their predictions wrong.

We recommend that you always do your own research, and consider the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decisions. Never invest more than you can afford to lose.

How and where to start trading SHIB in 2021

You can buy shiba inu on cryptocurrency exchanges like Binance, Huobi and Uniswap. When you buy coins on exchanges, you can transfer them to a software or hardware wallet for safe storage. 

Alternatively, you can trade SHIB using contracts for difference (CFDs). CFD trading allows you to speculate on the price of a cryptocurrency without actually holding the coin. 

With CFDs, you can speculate on both bullish and bearish price movements. If you expect the SHIB price to rise you can take a long position; if you expect it to fall, you can go short and still make a profit if the price drops.

As a leveraged product, CFDs are designed to maximise gains. However, you should be aware that using leverage also increases the size of the loss if the price moves against your position. 

Make sure you understand how CFDs work. Do your own research and always remember your decision to trade depends on your attitude to risk, your expertise in this market, the spread of your investment portfolio and how comfortable you feel about losing money. And never invest more than you can afford to lose. Learn more about cryptocurrency CFDs with our comprehensive guide. 

Create an account on Capital.com to stay on top of the latest SHIB coin news, analysis and forecasts, and spot the best trading opportunities.

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