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, which 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.
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.
That is mainly because Dogecoin’s supersonic price rally in late April resulted in a circa 60% correction. Bishko added:
“If SHIB repeats the same pattern, [traders] can buy more coins at a 60% discount.”
SHIB resumes uptrend
The profit-taking strategy appeared as Shiba Inu resumed its uptrend Friday after falling 41% in a price correction in the previous session.
SHIB rallied almost 27.5% to hit an intraday high of $0.00002919, much in line with similar upside moves across all the top crypto assets, including Bitcoin (BTC) and Ether (ETH). Small-cap tokens typically tail trends in the top-cap markets; for instance, SHIB’s 390% quarter-to-date (QTD) price rally coincided with Bitcoin’s 30% upside move in the same period.
At the same time, Shiba Inu’s daily relative strength index (RSI) identified the cryptocurrency’s current price valuations as overbought. Analysts consider an RSI reading above 70 as excessively valued for an asset, typically following up with either a price correction or sideways consolidation.
Bleeding Crypto, a Twitter-based independent market analyst, anticipated that SHIB would retest its sessional high of $0.00003528. The pseudonymous analyst cited a Fibonacci retracement graph behind its bullish continuation setup, noting that SHIB’s ability to rebound strongly after falling almost 50% meant that “it’s going back to business.”
$SHIB Looks like the 50% FIB is enough for $SHIB and its going back to business. Pretty impressed. I missed this whole train but I still like to admire the TA. Good Luck guys! pic.twitter.com/Ql9NI3rL0t— Bleeding Crypto (@Bleeding_Crypto) October 8, 2021
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.
Moreover, the Shiba Inu speculators have also been showing interest in the next week’s launch of 10,000 nonfungible tokens (NFTs), dubbed “Shiboshi.”
Dogecoin Price Analysis: DOGE breaks September low, finds support at $0.186
- Dogecoin price analysis is bearish today.
- DOGE/USD lost over 18 percent from the last high.
- Support was found at $0.186.
Dogecoin price analysis is bearish today as we expect further tests of downside to follow after a slight recovery from the $0.186 low. Likely, DOGE/USD will not react higher for long as sellers are still strong in the market.
The market overall saw bearish momentum return over the last 24 hours. The market leader, Bitcoin, declined by 7.56 percent, while Ethereum lost almost 9 percent. Meanwhile, Dogecoin (DOGE) follows, with a loss of a little over 5 percent.
Dogecoin price movement in the last 24 hours: Dogecoin drops overnight, finds support at $0.186
DOGE/USD traded in a range of $0.1954 – $0.2288, indicating strong volatility over the last 24 hours. Trading volume has increased by 87.15 percent, totaling $2.36 billion, while the total market cap trades around $26.88 billion, ranking the coin in 10th place overall.
DOGE/USD 4-hour chart: DOGE looks to recover today’s loss
On the 4-hour chart, we can see the Dogecoin price action reacting higher after further downside was rejected over the last hours.
Dogecoin price has seen continuous decline so far in November. After a spike to $0.34 at the end of September, DOGE/USD saw a strong reversal over the following days.
Since then, a series of lower lows and highs have been set until the $0.215 mark was reached on the 18th of November. The support prevented further downside for more than a week, while lower highs were still being set.
Yesterday, we saw the Dogecoin price set lower high again before starting to rapidly move lower. The $0.215 support was finally broken earlier today, leading to the $0.186 set as the new low. Over the past hours, a slight reaction higher followed, however, we should see DOGE/USD retest the low later today.
Dogecoin Price Analysis: Conclusion
Dogecoin price analysis is bearish today as we expect further downside to be tested after the current reaction higher ends. Likely we will see DOGE/USD look to retest the newly set low as sellers are still active.
While waiting for Dogecoin to move further, see our articles on the Best Crypto Wallet 2021, Decred Wallet, and Ripple vs SEC.
Whales Are Buying Dogecoin According to Smart-Contract Activity
Dogecoin on-chain activity suggests that traders might be trying to enter the coin at lows
The smart contract activity is one of the indirect ways of determining the number of actions that take place on-chain of one or another asset. In the case of Dogecoin, it has entered the top 10 most actively used smart contracts on the Ethereum chain.
According to the provided data, Doge took 7th place among the most actively interacted smart contracts on the chain. The meme-coin shared the top with coins like Binance Smart Chain, Binance USD and Chia Coin.
📰 #Dogecoin is on the top of most used smart contracts by the top 1000 BSC wallets
🐳 Whales are buying dips. How about you #DogeArmy ?
Source: https://t.co/IwpiW9WTip#DoOnlyGoodEveryday pic.twitter.com/IRe1pPD334— WhaleStats – the top 1000 Ethereum richlist (@WhaleStats) November 26, 2021
The usage of smart contracts usually implies increased buying activity since, in order to utilize a coin’s smart contract, users have to own a certain amount of tokens or coins.
While Doge’s on-chain data suggest that more people are starting to use it, the market data suggests the opposite. According to TradingView, Doge/USD trading pairs are losing up to 10% of their value.
At today’s low, Doge reached 15% in certain hours and tested the $0.188 support. The last time Dogecoin was trading at the same level was back at the end of September. Rapid growth in coins’ value was followed by the overall bullish cycle on the cryptocurrency market.
Elon Musk Acts on Behalf of Dogecoin Holders, Grabs the Attention of Binance CEO Changpeng Zhao
Elon Musk has grabbed Binance CEO Changpeng Zhao’s attention on Twitter as Dogecoin (DOGE) holders face withdrawal issues on the world’s largest exchange.
Binance suspended the withdrawal of DOGE on its platform on November 11th due to an issue caused by an upgrade. The exchange says it is suspending withdrawal transactions for up to 14 days as it continues to resolve the problem.
“The root cause is a technical issue during the recent upgrade process that caused old transactions to be resent to 1,674 users.
Since the incident occurred, DOGE Network has been providing us with support, but we have to rebuild the wallet entirely, which is causing a delay that we expect may last another week or so. It’s a long and complex process, but the team is working hard.”
In a series of tweets, Musk gave Zhao his take on Binance’s DOGE withdrawal suspension, calling the situation “shady.” Zhao apologized for the inconvenience while pointing to the technical nature of the issue. Zhao then took the opportunity to cast some shade himself.
Elon, we are pretty certain it is an issue with the latest #doge wallet. We are in communications with the devs. Apologies for any inconvenience that may have caused you.
What happened here? 👀https://t.co/g2J50zqbEu— CZ 🔶 Binance (@cz_binance) November 23, 2021
Binance also says that it is working to fix the problem and clarifies that the issue is “not shady.”
The company acknowledges that users are upset they cannot withdraw their DOGE coins, but assures Musk that it is working to resolve the issue and will provide round-the-clock customer support to affected users.
The Tesla CEO says that he is not a Binance user and is just voicing concern on behalf of other Dogecoin holders.
“I don’t use Binance (tried at one point, but signup was too many hoops to jump through), so no inconvenience to me personally. Just raising this issue on behalf of other Doge holders.”