Shiba Inu (SHIB), the meme coin spoof, suffered more than most in the great crypto sell off on Friday falling more than 38%. After a small recovery over the weekend, today (24 January) it is heading down again with 7% slashed off its price now at $0.00002145.
Like most of the major altcoins SHIB and its doggy pal DOGE have followed bitcoin (BTC) down which saw its own price drop 26% on Friday/Saturday. Around $200bn of value was wiped off the value of cryptocurrencies worldwide while investors' cash headed for the safer ground of government securities.
Stock markets across the world also got the jitters with the largely high tech Nasdaq Composite losing nearly 6%.
Concern over a tightening of US monetary policy by the Federal Reserve and possibly faster than expected interest rate rises sparked the sell off. The market was also spooked by Russia's central bank last week proposing a ban on cryptos. Russia is recognised as one of the crypto capitals of the world with nearly 12% of the population owning crypto and it being the third biggest mining country.
This latest bout of volatility follows what had already been a hectic period in the world of meme coins where the importance of fundamentals are usually outstripped by sentiment and gossip. SHIB saw its price rise 27%, drop 10%, rise again 10% only to fall again in the space of a few days.
This was driven a large scale investor or whale who bought 58.9 billion SHIB worth around $2m. Social media rumours (which have still not proved founded yet) suggested the exchange Robinhood was about to list SHIB.
The third reason, according to Capital.com, is that bitcoin and then its altcoins reacted positively to the US Consumer Price Index report, which showed that inflation rose to 7% in December, the highest in some 50 years sparking investment as a hedge against inflation.
The price drops in between presumably came as short term speculators took their profits.
This whale investment came, according to a report on Capital.com, after several investors already with large holdings bought more last month. One wallet added more than 4 trillion tokens valued at more than $136m, according to data from WhaleStats, which tracks over 1,000 Ethereum wallets.
A petition campaign to get SHIB listed on Robinhood has been running for several months and attracted nearly 556,000 signatures.
So, what is shiba inu all about, and, in this unstructured environment, what is the outlook for its price?
In this article, we take a look at the latest developments to help you consider if the shiba inu could be a suitable coin for your investment portfolio.
Shiba inu price soars and plunges in response to Musk tweets
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.
A petition on Change.org demanding the Robinhood exchange list Shiba citing the presence of rival dogecoin keeps building signatures but is it making a difference? The petition notes that Binance, another exchange, has listed Shiba which caused a 16% price uplift. At the time of writing it seems to have reached a peak of around 556,000 signatures.
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 reigniting interest in the coin. Then Musk admitted he did not own any of the cryptocurrency and it dropped 7%.
But over the next few days it recovered - in fact it rose by more than 40%. Then over November the share price dropped 23%. The news of the Kraken listing and Volk's appointment led to another sharp rise. Now the coin now stands at $0.00003283 giving a market capitalisation of $18.03bn ranking it 13th.
The price was bouyed in late November when SHIB was listed on the Kraken exchange and announced the appointment of gaming veteran William Volk which signals a move into that direction.
Hints of where that move will take it were given on 8 December when Shiba Inu revealed it had signed a strategic work-for-hire contract with Playside, the Australian video games developer. Under the deal, described as a "fixed-price, milestone-based agreement" the pair will develop a multiplayer Collectable Card Game.
On the same day the exchange Bitstamp announced it would be listing SHIB from 9 December.
On 8 December BitPay, a bitcoin payment service provider, announced SHIB was joining the ranks of coins it supports allowing users to "buy, store, swap and spend" SHIB.
On 31 December to further its stated commitment to decentralisation, the forces behind Shiba Inu (SHIB) said they were to launch Doggy DAO (decentralised autonomous organisation) in what they call a "stage-by-stage metric and phased approach".
The first phase is to give "immediate power to the community" to decide which crypto projects and pairs will be on its exchange will be, and how the $BONE (another shiba inu token) rewards of Allocation Points are to be distributed amongst them. The second phase will allow the community to make generic proposals.
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.
????NEW PAIRS ADDED + BURN????!!!!— Shib (@Shibtoken) August 7, 2021
The Shiba Community asked for a BURN ???? and #ShibaSwap DEVs have listened, and are delivering!
As one part of the new listings plans, they have implemented a burn procedure to reduce $SHIB and $LEASH supply. pic.twitter.com/lfooX0S00D
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.
There are currently 549 billion shiba inu coins in circulation, with the maximum supply set at one quadrillion, according to data from CoinMarketCap.
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 2022 and beyond?
Shiba coin price prediction: Will SHIB return to record highs?
The SHIB price has fallen its October all time high of $0.00008841 to $0.00002145 (24 January). Can it maintain that price?
At the time of writing, technical analysis showed that short-term sentiment on SHIB has. turned bearish, according to CoinCodex, with six indicators giving off bullish signals compared with 21 bearish signals. The daily simple and exponential moving averages were suggesting sell. The Relative Strength Index (RSI) was at 32.37. The RSI moves between zero and 100, and is considered overbought above 70 and oversold below 30.
The SHIB crypto price prediction from Wallet Investor still considers the coin to be an "awesome" long term investment. Its shiba inu price prediction is for $0.000071 for this time next year and predicts SHIB could be trading at $0.000237 by 2027.
The shiba inu (SHIB/USD) forecast from DigitalCoin predicted that the price could average $0.00003 in 2022, rising to an average of $0.000035 by 2023. The algorithm suggested the price could reach an average of $0.000047 by 2025.
For the longer term, the shiba inu coin price prediction for 2025–2030 from Coin Price Forecast suggested it could remain volatile, moving from $0.00086 at the end of 2025 to $0.0018 in 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.
Cryptocurrencies are high-risk investments, particularly “meme coins” like shiba inu. Whether SHIB has a future will depend on whether it finds a use that leads to widespread adoption. The coin’s future will also depend on activity across cryptocurrency markets. With new coins being launched regularly, a rival meme coin could emerge and capture investors’ attention.
Whether shiba inu is a suitable investment for you depends on your personal circumstances. Cryptocurrencies are highly volatile assets, making them riskier than other forms of investment. Meme coins are at the even more volatile end of this already volatile sector.
You should evaluate the level of risk you’re prepared to accept before investing. You should never invest money that you cannot afford to lose. It’s important to do your own research to help you decide if it’s a good fit for your investment portfolio.
As always, you should be aware that the past price performance is no guarantee of future returns, and you should never invest more than you can afford to lose.
Forecasting sites predict the shiba inu price will trend higher over the long term, particularly in the cryptocurrency markets, although it could take several years for the coin to establish a fresh record high. In the meantime, it’s crucial to remember that forecasters can and do get their predictions wrong.
The large supply of SHIB tokens in circulation limits how high the price can go under a realistic market capitalisation. As such, based on the high number of shiba inu coins in circulation and the large maximum supply, forecasters do not expect the SHIB price to reach $0.01 before the end of the decade. However, it’s crucial to remember that they can and do get their predictions wrong.
You can buy shiba inu on cryptocurrency exchanges like Binance, Huobi and Uniswap, and transfer it to a software or hardware wallet for security.
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.