Market Analysis

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

SHIB is notably mirroring its mentor Dogecoin’s price moves from the Feb-April 2021 session, raising possibilities of dump ahead.

Shiba Inu (SHIB) has emerged as one of the best investments heading into the fourth and final quarter of 2021, with its price rising by over 390% in the first week of October. Nonetheless, the spin-off meme cryptocurrency now risks wiping most of those gains in the coming sessions.

Yuriy Bishko, a Ukraine-based market analyst, discussed the potential bearish scenario based on Shiba Inu’s recent price trends that appear eerily similar to those recorded in the Dogecoin (DOGE) market earlier this year.

For instance, SHIB’s October price rally followed five months of consolidation inside a $0.00000398-wide price range. Similarly, DOGE’s sideways trend in Feb-April 2021, wherein its bids bounced between $0.0471 and $0.0630, served as a basis for a 500%-plus price rally in late April.

'Much ow' ahead? Dogecoin chart fractal puts Shiba Inu's 390% QTD rally in danger  1DOGE/USDT versus SHIB/USDT daily price chart. Source: Yuriy Bishko, TradingView.com

Bishko said that traders who bought Shiba Inu tokens during its sideways consolidation phase should sell at least 20-30% of their positions if they are still holding after the rally. Meanwhile, if SHIB’s net breakout stretch exceeds 500%, then traders should dump another 70-80% of their net holdings.

Read more:  Amid blackouts and police raids, Iran weighs benefits of Bitcoin mining

That is mainly because Dogecoin’s supersonic price rally in late April resulted in a circa 60% correction. Bishko added:  

Shiba Inu’s fundamentals seem to agree.

As Cointelegraph covered earlier, the team behind the cryptocurrency has been attempting to become a contender in the DeFi space. In detail, it launched ShibaSwap, a decentralized cryptocurrency exchange platform, in early July 2021, which now has over $360 million locked inside its liquidity pool.

Related: Is Dogecoin set to follow Shiba Inu’s (SHIB) 400% breakout?

Moreover, the Shiba Inu speculators have also been showing interest in the next week’s launch of 10,000 nonfungible tokens (NFTs), dubbed “Shiboshi.” 

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Read more:  4 reasons why Bitcoin’s bull run is intact despite a surprise stop hunt

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button