Is there a ‘lot of ow’ in store? Shiba Inu’s 390 percent QTD rise is jeopardized by a Dogecoin chart fractal.
SHIB’s price movements from the February–April 2021 period are strikingly similar to those of its mentor Dogecoin, increasing the possibility of a dump in the near future.
With a price increase of over 390 percent in the first week of October, Shiba Inu (SHIB) has emerged as one of the top options heading into the fourth and final quarter of 2021. Shiba’s spin-off seems to wipe out the majority of its gains in the upcoming sessions.
Yuriy Bishko, a market analyst based in Ukraine, emphasized the possibility of a bearish situation based on Shiba Inu’s recent price trends, which are eerily similar to those seen earlier this year in the Dogecoin (DOGE) market.
For example, SHIB’s price surge in October came after five months of stabilization inside a $0.00000398 price range. Similarly, DOGE’s sideways pattern from February to April 2021, when its bids were bountiful, was similar.
Traders who purchased Shiba Inu tokens during the sideways consolidation phase should sell at least 20%–30% of their positions if they are still holding following the rally, according to Bishko. Meanwhile, if the net breakout stretches for SHIB hits 500 percent, traders should sell another 70%–80% of their net holdings.
That’s because Dogecoin’s meteoric price rise in late April was followed by a 60 percent correction. Bishko went on to say:
“If SHIB follows the same pattern, [traders] will be able to buy more coins at a 60% discount.”
SHIB has resumed its upward trend.
The profit-taking approach was evident as Shiba Inu resumed its ascent on Friday after plunging 41% in the previous session due to a price adjustment.
SHIB surged about 27.5 percent to an intraday high of $0.00002919, mirroring similar gains in all major crypto assets, including Bitcoin (BTC) and Ether (ETH). Small-cap tokens often follow top-cap market movements; for example, SHIB’s 390 percent quarter-to-date (QTD) price increase corresponded with Bitcoin’s 30 percent QTD price increase.
Shiba Inu’s daily relative strength index (RSI) rated the cryptocurrency’s current price values as overbought at the same moment. An RSI reading above 70 is considered excessively valued by analysts and is usually followed by a price decline or sideways consolidation.
SHIB was expected to retest its sessional high of $0.00003528, according to Bleeding Crypto, a Twitter-based independent market analyst. Shib’s bullish continuation setup was based on a Fibonacci retracement graph. Analysts said that Shiba INU is back into business with the ability to rebound stronger after a tremendous 50% drop.
The foundations of the Shiba Inu appear to be in agreement.
As previously reported by Coin telegraph, the cryptocurrency’s creators have been attempting to establish themselves as a rival in the DeFi area. Also, Siba INU has launched its own decentralized crypto exchange platform ShibaSwap, in July 2021 with an approximate $360 million liquidity pool.