According to the analyst, the Doge chart fractal jeopardizes the Shiba Inu’s 390% QTD rally. SHIB specifically reflects the price action of its mentor Dogecoin in the February-April 2021 session, which raises the prospects for dumping going forward. Details of the topic cryptocoin.com‘in.
What does the DOGE fractal say?
The Shiba Inu (SHIB) has emerged as one of the best investments going into the fourth and final quarter of 2021, with its price increasing by over 390% in the first week of October. However, the meme cryptocurrency risks erasing many of these gains in the coming sessions. Yuriy Bishko, a Ukraine-based market analyst, discussed Shiba Inu’s potential bearish scenario based on recent price trends eerily similar to those recorded in the Dogecoin (DOGE) market earlier this year. For example, SHIB’s October price rally followed five months of consolidation in a price range of $0.0000398. Similarly, DOGE’s sideways trend in February-April 2021, with its bids bouncing between $0.0471 and $0.0630, provided the basis for a price increase of over 500% at the end of April.
Bishko said that traders who bought Shiba Inu tokens during the side consolidation phase should sell at least 20-30% of their positions if they still hold it after the rally. Meanwhile, if SHIB’s net outflow stretch exceeds 500%, traders should dump another 70-80% of their net assets. This is mainly because Dogecoin’s supersonic price rally at the end of April resulted in a correction of around 60%. Bishko added: “If SHIB repeats the same pattern, traders can buy more coins at a 60% discount.”
SHIB continues its uptrend
The profit-taking strategy emerged as the Shiba Inu continued its uptrend on Friday after falling 41% in the previous session’s price correction. SHIB rallied almost 27.5% to hit an intraday high of 0.00002919, in line with similar upside movements in all top cryptocurrencies including Bitcoin (BTC) and Ether (ETH). Small-cap tokens typically follow trends in high-end markets; For example, SHIB’s 390% QTD price rally coincided with Bitcoin’s 30% upward move over the same period.
At the same time, the Shiba Inu’s daily relative strength index (RSI) described the current price assessments of the cryptocurrency as overbought. Analysts consider an RSI reading above 70 to be overvalued for an asset that usually follows with a price correction or side consolidation. Bleeding Crypto, an independent Twitter-based market analyst, predicted that SHIB will retest the session high of $0.00003528. The analyst referred to a Fibonacci retracement chart behind the bullish continuation setup, noting that SHIB’s ability to recover strongly after falling almost 50% means “going back to work”.
As Cointelegraph previously covered, the team behind the cryptocurrency is trying to become a competitor in the DeFi space. In detail, it launched ShibaSwap, a decentralized cryptocurrency exchange platform, in early July 2021 and currently has over $360 million locked in its liquidity pool. Also, Shiba Inu speculators are showing interest in the launch of 10,000 NFTs called “Shiboshi” next week.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Disclaimer: The articles and articles on Kriptokoin.com do not constitute investment advice. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. Therefore, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.