Shiba Inu’s price has been trending lower for the past week, shedding some 7.2% during that period. The cryptocurrency is down some 15.6% in the past 30 days and around 36% over the past year.
We decided to poke ChatGPT on Shiba Inu’s future performance and see if the AI-based language model can make any kind of SHIB price prediction.
Here’s what it came up with.
Four Tailwinds for Shiba Inu’s Price
Before we get to the risks to SHIB’s price, ChatGPT also outlined four potential catalysts. First, it thinks that viral social media campaigns could potentially propel its price. If history is any indication, this could very well be true.
The bot also thinks that community support and mainstream attention could play a positive role in the future of SHIB’s price.
Strong communities can play a significant role in the success and longevity of cryptocurrencies. […] Celebrity endorsements or mentions can lead to short-term spikes.
Additionally, general market conditions can also play a beneficial role if bulls return in force. ChatGPT says that ëven tokens with less clear utility can see substantial price increases.”
Four Major Risks for SHIB’s Price
ChatGPT also had some warnings, though.
In the first place, it outlined that limited utility could be a challenge.
Unless the token develops a compelling use-case or beomes integrated into larger platforms or systems, its value proposition might remain speculative.
This also happens to be one of the critics’ main arguments. However, the Shiba Inu team has been delivering lately, despite some of the hiccups with the launch of Shibarium – the much-anticipated Shiba Inu layer-two network.
Second, ChatGPT says that governments around the world continue figuring out how to regulate the industry and that unfavorable regulations could have a negative impact.
In addition, as a counterpoint to the positive argument above, market sentiment can also turn worse. Altcoins tend to be very sensitive to it, and if it goes south, prices can plummet.
Last but not least, there’s the risk of high competition.
There are thousands of tokens in the market. It’s though for any one token to maintain attention and relevance over the long term without clear utility or differentiation.