The 12th largest cryptocurrency in the world, Shiba Inu ( SHIB ) started off as a humble meme coin — however, since then, it has stood out through its staying power as well as several technical improvements that could serve to position it as a part of the wider blockchain and DeFi space that actually provides utility. Shibarium, a Layer-2 blockchain, has gone a long way in improving scalability and transaction efficiency. In tandem with this, the project announced the launch of a stablecoin which is to be pegged at $0.01, in a move that could serve to broaden SHIB’s appeal. Over the course of 2024, Shiba Inu has experienced significant volatility. January and February were marked by relatively flat price action, followed by a sudden surge from $0.0000101 to a yearly high of $0.00003629. This 259.30% rally marked the beginning of a downtrend that lasted until September, with prices receding to as little as $0.00001316. At press time, SHIB was trading at $0.00002633 — having marked a 6.75% loss on the weekly chart which brought monthly returns down to just 0.24%. On a year-to-date (YTD) basis, SHIB prices have increased by 154.90%. SHIB price YTD chart. Source: Finbold Amidst all of the sudden price moves, Finbold has consulted one of the most powerful publicly available large language models (LLMs) — OpenAI’s ChatGPT-4o to provide additional clarity as to which prices the digital asset could be trading at by the close of the year. GPT-4o outlined several bullish and bearish factors affecting SHIB When queried, the AI model highlighted the recent integration of fully homomorphic encryption (FHE) as a factors that improves ecosystem utility and which could serve to broaden the token’s appeal. In tandem, it mentioned the recent surges in SHIB’s burn rate as a possible catalyst for higher valuations, as the mechanism ensures scarcity. Lastly, the increase in SHIB’s utility and institutional interest were also outlined as broadly bullish factors at play — both of which could increase the project’s long-term potential. Bullish factors affecting SHIB. Source: OpenAI On the other hand, GPT-4o opined that, increased utility aside, SHIB still relies heavily on social media and hype — and that such a dependency on the market sentiment makes it vulnerable to sudden and often irrational fluctuations. Regulatory risks were also mentioned — although this is a factor that, broadly speaking, applies to all cryptocurrencies. More interestingly, OpenAI’s model emphasized the highly concentrated nature of SHIB as a risk factor — citing price manipulation or sudden dumps as a possible danger. Lastly, it noted that other projects, like Solana (SOL) or Avalanche (AVAX), with more advanced technology at their disposal and utility that is already proven, could overshadow the aspiring meme token. Bearish factors affecting SHIB. Source: OpenAI In terms of price targets, the model outlined two — one for a bullish scenario, and the other for a case where bearish factors turn out to be dominant. In the first case, GPT-4o predicted that SHIB could see prices as high as $0.00006656 — equating to a 155.12% upside from current prices. For the bearish scenario, the AI model set a price target of $0.00002576 — just 1.26% below SHIB’s current price. SHIB price targets for the end of 2024. Source: OpenAI Technical analysts spot favorable SHIB chart patterns The output of the AI model shows a notable discrepancy — in the bullish scenario, a sharp move to the upside is being predicted. However, in the bearish scenario, only a limited correction is outlined as a likely result. Broadly speaking, this conclusion supports the theses put out by numerous cryptocurrency technical analysts. SHIB could be forming an ascending triangle pattern, per pseudonymous crypto expert CW — if legitimate, the signal could suggest a move to $0.00004, equating to a 51.91% surge. SHIB ascending triangle pattern. Source: CW on X At present, the bullish factors do appear stronger — traders should be on the lookout for temporary dips, as they can serve as better entry points for long positions. Featured image via Shutterstock The post ChatGPT says Shiba Inu price will hit this target by December 31, 2024 appeared first on Finbold .
