Can SHIB Rally Before 2024? ChatGPT Weighs in on Potential

Summary

• ChatGPT suggested that SHIB’s price may experience a surge in Q4, provided specific conditions like increased token burnings are met.
• Anticipated interest rate reductions and diminished selling pressure from exchanges could also lead to a potential rise for the meme coin.

Is SHIB Ready to Reveal Its Potential?

As the second-largest meme coin in terms of market cap, it saw a significant spike in Q1, 2024, when its value soared to $0.00003629. However, it has since been on a decline, currently trading at approximately $0.00001364, reflecting a 62% drop from the yearly high.

The SHIB community might be looking forward to a new rally soon, so we asked ChatGPT if such a scenario is likely by the end of 2024. 

The AI chatbot noted that predicting this outcome is challenging, emphasizing several crucial elements that may influence the situation, starting with the progress of Shibarium.

The layer-2 scaling solution is engineered to offer a scalable, cost-effective, and effective infrastructure that can support the Shiba Inu ecosystem. The protocol has undergone significant upgrades in recent months, and some industry experts believe further advancements will positively impact SHIB’s price.

“Should Shibarium achieve traction and see greater adoption, it might elevate the demand for SHIB, as users would require the token for transaction fees and interaction with the network,” ChatGPT remarked.

The following critical factor is the Shiba Inu burning initiative, which aims to diminish the vast circulating supply of the meme coin, thereby making it scarcer and possibly more valuable over time (contingent on demand remaining stable or increasing).

As CryptoPotato reported, over 680 million SHIB tokens were destroyed in August. To date, the cumulative amount of coins sent to a null address since the initiation of the mechanism exceeds 410 trillion, indicating that there are currently 583.4 trillion in circulation.

Favorable investor sentiment, overall market recovery, additional backing from major exchanges, and global economic conditions are other factors that might enhance SHIB’s value in the coming months.

Will There Be a Short-Term Upsurge?

Another potential indicator that SHIB’s price may begin to rise as soon as this month is the forthcoming FOMC meeting (set for September 18), during which the US Federal Reserve is anticipated to cut interest rates for the first time in years. This move would lower borrowing costs and might stimulate investor interest in high-risk assets like cryptocurrencies.

Certain on-chain indicators also suggest promising times ahead for SHIB enthusiasts. For instance, the Shiba Inu exchange netflow has mostly shown negative values in the past week, indicating a trend from centralized exchanges to self-custody practices. This might be seen as a bullish sign, as it decreases the immediate selling pressure.