Shiba Inu Price Analysis: SHIB Primed For 2x Explosion as Meme Season Returns
Chart analysis and an overview of the macro backdrop suggest that the Shiba Inu (SHIB) price is preparing for a sharp rally in the weeks ahead. Last at around $0.000016, the Shiba Inu price is within recent intraday ranges, following its impressive run higher from the multi-month lows hit in early April around $0.00001070.
Per CoinMarketCap, its market cap was last around $9.6 billion, with over $530 million in trading volume in the past 24 hours.
However, the rally could only just be getting started. Since early April, macro news flow has been strongly positive.
Trade war tensions have eased, with the US and China announcing a substantial lowering of tariffs this week, and the US delaying the implementation of tariffs on other trading partners in recent weeks.
Meanwhile, US inflation data came in cooler than expected on Tuesday and hit a four-year low, suggesting that fears around a tariff-related spike in inflation have, so far, been overblown.
Data releases in recent weeks have suggested that the US economy, while showing some cracks, isn’t on the cusp of cratering into a major recession.
Risk assets, including meme coins like Shiba Inu, thus have the green light to continue moving higher in the weeks ahead.
Meanwhile, chart analysis only strengthens the case for more upside. The Shiba Inu price broke decisively above a long-term downtrend in mid-April, and enjoyed a strong bounce from its 21 and 50 DMAs in early May.
This suggests that the bulls are in control of the market right now. A surge higher to late 2024’s highs in the $0.000033 area, a 2x rally from current levels, seems likely.
So, could this be the start of a new, full-blown meme coin season?
Shiba Inu Price Prediction – Prepare for the Start of a New Meme Season?
The stars could be coalescing for the start of a new meme coin season. Meme seasons have historically needed a major positive catalyst to get running.
In late 2024, it was the election of pro-crypto US Presidential candidate Donald Trump. In early 2024, it was the success of the spot Bitcoin ETFs and the surge to new record highs for the BTC price.
Throughout 2021, it was the Fed and the US government’s extensive easing policies of zero interest rates, QE, stimulus cheques, and large deficit spending.
An easing of tariff tensions, combined with a return of economic optimism, coupled with Fed rate cuts through the end of 2025, could lift the markets enough to push the Shiba Inu price back to multi-year highs.
That said, it would probably require 2021-level fiscal/monetary policy conditions for Shiba Inu to 5x or more from current levels, and those kinds of policies have only historically been enacted to address a major economic crisis.
Perhaps the US economy, weighed by recent trade uncertainty, persistently high interest rates and a bloated Federal debt repayment burden, could yet slide into recession this year, triggering such a policy response.
In that case, the Shiba Inu price would likely see a substantial decline before recovering.
Meme coin investors would be wise to continue dollar-cost averaging into major tokens like Shiba Inu in anticipation that higher prices will eventually come.
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