Blockchain analytics platform Santiment says that a memecoin which has soared by nearly 400% over the past seven days could be due for a correction.
Santiment points out that the number of Shiba Inu’s (SHIB) active deposits is “extremely high,” which suggests a possible reversal in the future.
“Yellow flags starting here. Extremely high active deposits are suggesting that it’s probably a top forming.”
The crypto analytics firm says that even though SHIB inflow to exchanges is “not very high,” it nevertheless hints that a reversal could be imminent.
“It’s not very high, we would expect to see much higher. But still it’s suggesting the same, probably a top forming.”
Santiment also says that profit-taking by SHIB traders is low, an indication that traders are betting on the price of the memecoin surging even higher. The firm warns that markets often “punish” this kind of overconfidence.
“…potential profit-taking from Shiba is still relatively low, not a whole lot… yet.
We would notice that higher price tops are built on lower profit-taking spikes. This could potentially indicate that traders are becoming too confident on price action, like ‘no need to sell, it’s going to pump more.’ Market tends to punish this sort of confidence.”
Shiba Inu is trading at $0.000034 at time of writing, according to CoinGecko. Since the start of the year when the memecoin was priced at $0.000000000077, SHIB has surged by over 440,000%. SHIB is currently ranked 12th by market cap.
One Low-Cap Altcoin Set for Massive Supply Shock As Solana Preps for Epic Rally: Crypto Analyst
A popular crypto strategist and trader is predicting a fresh price spike for smart contract platform Solana and says one low-cap altcoin is gearing up for a supply shock.
Pseudonymous crypto analyst Credible tells his 251,900 Twitter followers that he expects Solana (SOL) to ignite a massive rally after breaking out and starting a new wave of its cycle.
“SOL is leading the market and looks to have completed its macro 4th wave as a triangle. This implies we have begun the final fifth wave of SOL’s first macrocycle. This is going to be epic and a taste of what we will see across the board in the coming months. Expecting $500+.”
The trader relies on the Elliott Wave theory, a technical analysis approach that predicts future price action by following crowd psychology that tends to manifest in waves.
The crypto analyst is also keeping a close watch on Curve (CRV), the governance token of stablecoin-focused decentralized exchange Curve Finance. According to Credible, he expects CRV to surge as high as $6.50 now that it has taken out key resistance at $3.50.
“CRV is synergistic with CVX (Convex Finance). I can’t explain the mechanics in a tweet – but when CVX goes up it increases the inherent value of CRV and when CRV goes up it increases the inherent value of CVX.”
Convex Finance is a platform designed to help CRV token holders and liquidity providers earn additional interest rewards. At time of writing, CRV is trading at $3.75 while CVX is exchanging hands at $19.61, according to CoinGecko.
Credible says he’s bullish on Curve because nearly 90% of its supply is locked for the coming years.
“Oh, and 89% of all circulating CRV is locked away for around 3.7 years lmao. So when we DO break out and everyone is clamoring to join in on the green candles, there is going to be a massive supply shock that sends prices even higher, faster. Get yours before it all starts… Yea so locking generates voting power – which in turn is used to boost yields for other protocols – so vote locked CRV is in high demand.”
Another Altcoin Scam Teaches Inexperienced Investors & Influencers a Lesson
A fake food delivery platform named Crypto Eats has robbed its users of some USD 500,000 before disappearing off the face of the earth, leaving behind t-shirts and promotional merchandise, and the puzzled participants of its London launch party.
The scam resurfaced among discussions by a number of UK-based TikTok influencers who talked about a new startup poised to compete against giants such as UberEats by enabling its customers to pay with cryptocurrency, as reported by Vice. The fake service’s creators promoted it online, created merchandise with its logo, threw a party, and even issued a press release that has since been taken down by some services, but is still available on other websites.
“Rumors are always what keeps the FinTech industry going and competitive. Amongst so many rumors, one is of a new food delivery app in development,” the release said. “Crypto Eats, may be soon proud to announce its arrival sooner rather than later, as it aims to be launched in early 2022 or before the end of the Q4 2021.”
The press release was written in poor English and possibly translated from another language via a machine translation service, as indicated by statements such as: “the said decentralized food delivery app has been in the developing process since the last year, in order to bridge a food delivery payment system, which can bring in the use of the Cryptocurrencies, as well as the Credit card for the payments.”
This, however, was not enough to arouse the suspicion of numerous users who fell for Crypto Eats and believed that the app had raised USD 8m in Series A funding. Shortly after making waves online, the fake service vanished with some USD 500,000 of funds stolen from its users, and it turned out that Crypto Eats founder Wade Philips does not exist.
The scam’s outreach to potential users was reinforced by its use of online celebrities such as British TikToker Hstikkytokky.
“The coin is launching on the 17th of October. All I’m saying is use your brains. They’ve got more money than they know what to do with,” hstikkytokky reportedly said. “And if you’ve got more money than you know what to do with, and you’re launching something that’s better than other things, it will do well.”
“The rug pull is horrendous but those influencers should also be held accountable. If you have 1M people hanging on your every word, then you need to show some responsibility,” commented a Redditor who goes by the name of UJ_Reddit.
One Altcoin Will Outperform Solana, Binance Coin, Cardano, Ethereum and Bitcoin This Cycle, Says Popular Crypto Analyst
A widely followed analyst says that one crypto will manage to outperform Bitcoin (BTC) and four big-name altcoins during this bull cycle.
The pseudonymous crypto analyst known as Capo tells his 180,000 Twitter followers that Bitcoin dominance, which is Bitcoin’s market cap compared to the rest of the crypto market, looks to be trending higher, but will likely hit a hard resistance at the 50.00 level.
The analyst says that the last time Bitcoin made an all-time high, Bitcoin dominance eventually topped out and plunged, sending altcoins on a new leg up. According to Capo, the same scenario could be around the corner.
Not ruling out the move up to 49%-50%
Last time $BTC made a new ATH, dominance kept rising for some days.
Sooner or later it will make new lows. I will hold altcoins until the end of the cycle.”
Once capital starts moving into altcoins, the analyst expects Ethereum to massively outperform Bitcoin, noting that its Bitcoin pair (ETH/BTC) is already forming a bullish structure that suggests an all-time high is right around the corner.
Bouncing hard within a range that looks like reaccumulation. This is a higher low of a bullish structure. I wouldn’t bet for the downside.
This is good for the altseason.”
With Ethereum outperforming Bitcoin, Capo next predicts that Cardano (ADA) will outperform ETH, Binance Coin (BNB) outperforming Cardano, and Solana (SOL) outperforming Binance Coin.
The one altcoin that the analyst predicts will outperform them all is smart contract platform Polkadot (DOT).
“Expected performance until end of the cycle:
$DOT > $SOL > $BNB > $ADA > $ETH > $BTC”
Polkadot is currently trading at $40 after a massive recovery from $11 in July, according to CoinGecko.
Ultimately, the closely followed strategist foresees the whole crypto market cycle ending when Bitcoin is trading above the $150,000 level, which is about a 145% move up from current prices.