The Shiba Inu (SHIB), which has seen its price rise by more than 390% in the first weeks of October, is one of the most popular investments going into the fourth quarter and final quarter 2021. However, most of these gains could be lost by the spin-off cryptocurrency meme cryptocurrency.
Yuriy Bishko is a market analyst based in Ukraine. He discussed the possible bearish scenario based upon Shiba Inu’s recent price trends. These prices seem eerily similar with those that were recorded in the Dogecoin market (DOGE) earlier this year.
SHIB’s October price rise was the result of five months of consolidation within a $0.00000398 wide price range. Similar to SHIB’s sideways trend between February and April 2021, in which its bids fluctuated between $0.0471- $0.0630, it served as the basis for a 500% plus price rally in April.
Daily price chart DOGE/USDT versus SHIB/USDT Source: TradingView.com, Yuriy Bishko
Bishko stated that traders who purchased Shiba Inu tokens in the sideways consolidation phase of the rally should sell 20%-30% of their positions, if they still hold after the rally. If SHIB’s net breakout exceeds 500% traders should sell another 70%-80%.
This is due to Dogecoin’s late April supersonic price rally that resulted in an approximately 60% correction. Bishko also added:
“If SHIB repeats a similar pattern, [traders] may be able to buy more coins at a discount of 60%.”
SHIB continues to be in the ascendant
Profit-taking strategies emerged as Shiba Inu’s uptrend resumed Friday, after it had fallen 41% in price corrections in the previous session.
SHIB rose almost 27.5% to reach an intraday high at $0.0000291919. This is in line with similar upside moves across all top crypto assets including Bitcoin (BTC), Ether (ETH) and Ether. The top-cap markets tend to follow trends for small-cap tokens. For instance, SHIB’s 390% quarter–to-date (QTD), price rally coincided closely with Bitcoin’s 30% upside movement in the same period.
Daily price chart for SHIB/USDT. Source: TradingView.com
Shiba Inu’s daily relator strength index (RSI), also identified cryptocurrency’s current valuations as being overbought. An analyst considers an RSI reading of 70 or higher excessively valuable for an asset. Typically, this is followed up with either a price correction (or sideways consolidation).
Bleeding Crypto is a Twitter-based independent market analysts who predicted that SHIB would test its sessional high at $0.00003528. According to the pseudonymous analyst, a Fibonacci regression graph was used to explain SHIB’s bullish continuation setup. He also noted that SHIB’s strong rebound after falling nearly 50% indicated that “it’s getting back to business.”
$SHIB It seems like $SHIB’s 50% FIB is sufficient and it will be back in business. I was impressed. Although I was unable to catch the entire train, I admire the TA. Good Luck guys! pic.twitter.com/Ql9NI3rL0t
— Bleeding Crypto (@Bleeding_Crypto), October 8, 2021
Fundamentals of Shiba Inu seem to be in agreement
Cointelegraph reported earlier that the team behind the cryptocurrency was trying to be a player in the DeFi market. It launched ShibaSwap in July 2021. This decentralized cryptocurrency exchange platform now has more than $360 million in its liquidity pool.
Related: Dogecoin to follow Shiba Iu’s (SHIB), 400% breakout?
Shiba Inu speculators are also interested in the launch of 10,000 nonfungible tokens, NFTs, next week. These tokens will be referred to as “Shiboshi.”
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I am a technology and gaming writer by profession. I love NFT’s and play to earn gaming such as Axie Infinity. I love writing about anything on the blockchain, especially gaming and entertainment. I often sing, write or draw to portray my feelings. When it comes to my free time or you can say ‘ME-TIME’, I love to play with my cat, sleep an extra hour, or play my favorite video games.