Shiba Inu price is trading higher today, March 24, with a modest 1.6% gain. The meme coin has flipped resistance at $0.0000128, and speculation is now rife among traders about whether it will maintain the bullish trajectory and attract high buy volumes. In this article, we dive into how high SHIB will go if it records $50 billion to $100 billion in daily buy volumes.
Impact of Volumes on Shiba Inu Price
Trading volumes tend to have a major impact on the price. Each time buy volumes are high, the price reacts by trending higher while sell volumes push the price lower.
Tradingview data highlights the correlation between buy volumes and Shiba Inu price. Whenever there is an uptick in buying activity, the ADX rises higher, indicating a strong bullish trend. Additionally, past trends show that high buying volumes have stirred gains of as high as 1,300% within days as seen on the SHIB weekly chart.
SHIB/USDT: 1-week Chart
This data suggests that if traders were to buy between $50 billion and $100 billion worth of SHIB, the resulting price rally would be parabolic.
SHIB Price Potential with $50B or $100B Buy Volume
If Shiba Inu attracted $50B to $100B daily buying volumes, the meme coin could attain the highly anticipated $0.01 SHIB price target. Here’s how:
Scenario 1: SHIB attains $50B in daily buy volumes
For context, SHIB’s daily trading volumes stand at around $138M at press time, which is 1.78% of the current Shiba Inu market cap of $7.76 billion.
Assuming a direct relationship between volume and market cap, a 362% rise in trading volumes to $50B would push SHIB’s new market cap to $2.78 trillion. With this market cap and a supply of 589 trillion, 1 SHIB token will be worth $0.0047.
Scenario 2: SHIB attains $100B in daily buy volumes
On the other hand, to attain $100B in daily buy activity, this top meme coin would have to record a 724% rise in volumes, This would push its market cap to $5.55 trillion, where the price of 1 SHIB token will be worth $0.0094. This is close to the coveted $0.01 price target.
Reasons Why SHIB May Not Attain These Targets in the Near Term
Attaining $50 billion to $100 billion in buying volumes would push Shiba Inu to between $0.004 and $0.01. However, this Shiba Inu price prediction cannot be attained in the near term due to several reasons.
The first is that with a market cap of between $2.7 trillion and $5.5 trillion, SHIB would surpass Bitcoin. This cannot be achieved in the near term because unlike Bitcoin, Ethereum and other top altcoins, Shiba Inu has yet to see a surge in institutional interest.
Secondly, attaining daily buy volumes of between $50B and $100B is not realistic under the current market conditions. Bitcoin’s current daily volumes stand at $21 billion. For SHIB to attract more interest than Bitcoin and record an over 362% rise in volumes it would have to achieve high utility and intense adoption.
Nevertheless, this price target can be achieved if there is a reduction in the total Shiba Inu supply through SHIB token burns. The filing of Shiba Inu ETF and the subsequent approval could also aid in increasing volume, making the $0.004 and $0.01 price targets achievable.
Summary
Shiba Inu price could rally to between $0.004 and $0.01 if daily buy volumes reached $50 billion to $100 billion. However, to attain such high volumes, the SHIB meme coin would have to record a massive surge in usage, adoption and institutional interest.
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muthoni
Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience dissecting blockchain trends, price movements, and market dynamics. With a sharp eye for technical analysis and an in-depth understanding of on-chain metrics, she delivers insightful, data-driven content that helps investors navigate the fast-paced world of digital assets.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
