‘Much ow’ ahead? Dogecoin chart fractal puts Shiba Inu’s 390% QTD rally in danger

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Shiba Inu (SHIB) became one of the best investments in the fourth, final quarter of 2021, with prices rising more than 390% in the first week of October. However, the standalone memes cryptocurrency now risks wiping out most of these advances in the upcoming sessions.

Market analyst from Ukraine Yuriy Bishko discussed a possible bearish scenario based on the recent Shiba Inu price trend, which is very similar to the one recorded in the Dogecoin (DOGE) market earlier this year.

For example, the price increase occurred in October after five months of consolidation in the $ 0.00000398 price range. Likewise, the DOGE sideways trend in February-April 2021, when rates rose from $ 0.0471 to $ 0.0630, served as the basis for a 500% price increase in late April.

Daily chart of DOGE / USDT and SHIB / USDT prices. Source: Yuri Bishko, TradingView.com
Bishko said that traders who bought Shiba Inu tokens during the consolidation phase should sell at least 20-30% of their positions if they continue to hold them after the rally. Meanwhile, if the expansion of SHIB’s net penetration exceeds 500%, traders must dispose of an additional 70-80% of net inventory.

This is mainly due to the fact that the supersonic rise in Dogecoin prices at the end of April resulted in a correction of almost 60%. Peshko added:

“If the SHIB follows the same pattern, [traders] can buy more coins at a 60% discount.”
Sheep continue the trend
The profit-enhancing strategy emerged when the Shiba Inu resumed its uptrend on Friday after falling 41% as a result of a price correction in the previous session.

SHIB shares surged nearly 27.5%, hitting a high intraday high of $ 0.00002919, which is largely in line with similar bullish characteristics of all the top cryptocurrencies, including Bitcoin (BTC) and Ether (ETH). Small cap tokens usually follow trends in higher capital markets; For example, a 390% rise in the SHIB price to date (QTD) has coincided with a 30% increase in the bitcoin price over the same period.

Daily SHIB / USDT price chart. Source: TradingView.com
Meanwhile, the daily Shiba Inu Relative Strength Index (RSI) identified current cryptocurrency price estimates as overbought. Analysts believe that an RSI reading above 70 is overly valuable for an asset and usually follows either a price correction or sideways consolidation.

Bleeding Crypto, a Twitter-based independent market analyst, expected SHIB to retest the session for $ 0.00003528. An analyst under a pseudonym pointed to the Fibonacci retracement chart underlying his bullish continuation setup, noting that SHIB’s ability to rebound sharply after falling nearly 50% means he is “back in business.”

The Shiba Inu fundamentals seem to agree with her.

As previously reported by Cointelegraph, the team behind the cryptocurrency was trying to compete in the DeFi space. In particular, the ShibaSwap decentralized crypto exchange, launched in early July 2021, now has over $ 360 million in its liquidity pool.

Related Topics: Should Dogecoin Follow The 400% Shiba Inu (SHIB) Hack?

In addition, Shiba Inu speculators have also expressed interest in issuing 10,000 non-fungal tokens (NFT), called “shiboshi” next week.

Source: CoinTelegraph

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