SHIB has emerged as one of the best investments of the fourth and final quarter of 2021, with prices rising more than 390% in the first week of October. Nonetheless, the spin-off meme cryptocurrency now risks erasing most of those gains in the upcoming session.
Ukraine-based market analyst Yuri Bishko discusses a possible bearish scenario based on Shiva Inu’s recent price trends, similar to those recorded in the Dogecoin (DOGE) market earlier this year.
For example, SHIB’s October price rally followed a five-month consolidation within the মূল্য 0.00000398-wide price range. Similarly, the side trend of DOGE in February-April 2021, where its price bounced from $ 0.0471 to $ 0.0630, which served as the basis for the rally of 500% -plus price towards the end of April.
Bishko said that merchants who bought Shiva Inu tokens at the consolidation stage, would have to sell at least 20% -30% of their position if they held on even after the rally. Meanwhile, if SHIB’s net breakout extends beyond 500%, traders will have to dump 70% -80% of their net holdings.
This is mainly because the rally of Dogcoin’s supersonic price in late April corrected about 60%. Bishko added:
“If SHIB repeats the same pattern, [traders] You can buy more coins with 60% discount. “
SHIB uptrend resumes
The profit-taking strategy came as Shiva Inu started its upward growth on Friday after falling 1% in price revision in the previous session.
SIBI has risen about 27.5% to reach an interim high of 00 0.00002919, in line with similar side-up measures across all top crypto assets, including Bitcoin (BTC) and Ether (ETH). Small-cap tokens are generally the tail trend in the top-cap market; For example, SHIB’s 390% quarter-to-date (QTD) price rally coincided with the 30% side-up move of Bitcoin at the same time.
At the same time, Shiva Inu’s Daily Relative Strength Index (RSI) has identified the current valuation of the cryptocurrency as an additional purchase. Analysts consider an RSI reading above 70 to be extra valuable for the asset, usually followed by price correction or subsequent consolidation.
Bleeding Crypto, a Twitter-based independent market analyst, speculated that SHIB would re-examine the session high of 0.00003528. The pseudonym analyst cites a Fibonacci retracement graph behind its bullish continuity setup, noting that SHIB’s resurgence after a nearly 50% fall means “it’s going back to business.”
– Bleeding Crypto (leBleeding_Crypto) October 8, 2021
Shiva Inu seems to agree on the basics.
As Cointelegraph previously covered, the team behind the cryptocurrency is trying to be a competitor in the DFI space. In detail, it launched Shivaswap, a decentralized cryptocurrency exchange platform in early July 2021, which now has more than 60 360 million locked in its liquidity pool.
Related: Is Dogecoin Ready to Follow SHIB 400% Breakout?
In addition, Shiva Inu Settlers are also showing interest in launching 10,000 non-fungible tokens (NFTs) called “Shibosi” next week.
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