Top dogs: Newbie Shiba Inu bites back, gains 25% vs. Dogecoin in February

February 10, 2022 Coin Telegraph

Metaverse craze, token burning events, and increasing merchant adoption have made Shiba Inu outperform Dogecoin so far this month.

Shiba Inu (SHIB) is now the 13th-largest cryptocurrency with its market valuation sitting near $18 billion, right behind its rival meme-cryptocurrency Dogecoin (DOGE), worth roughly $20 billion.

But despite falling behind in ranks, SHIB's price has outperformed DOGE in 2022. February has seen a sharp recovery for the SHIB/DOGE pair, in particular, rising by over 38% month-to-date (MTD).

As a result, Shiba Inu gained more than 50% MTD against the dollar versus Dogecoin's 11%, as shown in the chart below.

*SHIB/USDT vs. DOGE/USDT daily price performance. Source: TradingView*

Most of the February's — and, in fact, 2022's — gains in the SHIB market surfaced on two dates: Feb. 6 and 7. SHIB's price rose by a net 41% led by back-to-back optimistic updates in the Shiba Inu market compared to DOGE's 12.5% gain.

Welly's adoption, burn party, other bullish catalysts

Shiba Inu's rally in February primarily came in the wake of multiple bullish catalysts, including merchant adoption, a token burning event, and the announcement of a layer-2 blockchain solution.

On Feb. 3, Welly's — a fast-food chain selling burgers and french fries — announced a tie-up with Shiba Inu. In doing so, the firm decided to rebrand its stores to integrate Shiba Inu-themed products, including non-fungible tokens (NFTs) featuring their mascot dog's imageries.

SHIB X WELLY (.@wellyfriends)! Exceptional Shib Branded Fast Food available NOW, Shib Ecosystem integration, Global Store Expansion and our first bold step into "in-real-life" products all explained in this medium! Don't eat like a clown, eat WELL. https://t.co/jgs4pWQNHw
— Shytoshi Kusama™ (@ShytoshiKusama) February 2, 2022

Welly's customers will be able to buy their products using SHIB tokens while participating in their food chain's expansion via Shiba Inu's decentralized autonomous organization "Doggy DAO." A day after the announcement, SHIB's price rose by 7% to $0.00002219.

On Feb. 5, a day before the big Shiba Inu rally, crypto company Bigger Entertainment announced a massive "coin burn" involving SHIB tokens on Valentine's Day, effectively removing 162 million SHIB from circulation.

On the same day, Singaporean blockchain solutions firm Unification, which has previously worked with Amazon and Google, announced that it had been engaging with the Shiba Inu creators to develop a layer-2 solution called Shibarium, optimized for gaming.

In contrast, Dogecoin's ecosystem stayed far from hype-building scenarios and traded, more or less‚ in sync with broader crypto market trends. Its last big update came on Jan. 14, when billionaire entrepreneur Elon Musk announced that his electric vehicle manufacturing company, Tesla, would accept payments in DOGE.

Tesla merch buyable with Dogecoin
— Elon Musk (@elonmusk) January 14, 2022

DOGE rallied to as high as $0.2148 after the Tesla news on Jan. 14 but has since dropped to near $0.1500.

Next Shiba Inu hype in focus: metaverse

Unlike Dogecoin, Shiba Inu has been holding its recent gains. On Thursday, SHIB was trading merely 5% lower than its year-to-date high of $0.00003523 while eying a breakout above its interim resistance level of $0.00003331.

*SHIB/USDT daily price chart. Source: TradingView*

SHIB held its bullish bias as Shiba Inu creators announced on Wednesday that they would foray into the emerging metaverse sector. In doing so, they would enable users to buy plots on virtual lands. However, they did not disclose when they plan to launch the yet-to-be-named project.

The news also helped LEASH, a token that would enable users to purchase and auction lands inside the Shiba Inu metaverse, rally by 45% on Feb. 9. This also coincided with someone purchasing 3.4 trillion SHIB worth almost $116 million in a single sale.

On Feb. 8th a new Shiba Inu whale purchased 3.4 trillion $SHIB ($115.9 million USD)

SOMETHING BIG COMING!!
— Shiba Inu News (@ShibReports) February 10, 2022

But SHIB comes with its own set of risks. For starters, the token's upside boom has done little in boosting its use case outside the cryptocurrency exchanges. For example, Cryptwerk, an online crypto directory, shows that only 618 merchants globally accept payments in SHIB. In comparison, more than 2,000 merchants have integrated DOGE into their checkout page.

Extreme price volatility also puts Shiba Inu at risk of facing massive pullbacks.

SHIB's recent history shows that it has corrected 80-90% during its previous two bearish cycles. As the token now eyes a decisive close above $0.00003331 to ensure its long-term bullish bias, a pullback of equal proportion could have it wipe 40% of its recent gains, with the next downside target sitting near $0.00002091.

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.

Shiba Inu rebounds 40% despite major selling by SHIB whales

October 11, 2021 Coin Telegraph

Altcoin Analysis

The sharp upside retracement surfaces as retail frenzy around Shiba Inu hints at testing May peak levels.

Shiba Inu (SHIB) kickstarted its new weekly session in the green as it continued its bullish retracement move from last week’s low of $0.00002058.

SHIB’s price logged an intraday high of $0.00002907 on Oct. 11, netting over 40% returns from its ongoing rebound trend. In doing so, the Dogecoin-inspired meme cryptocurrency eyed an extended runup toward its technical resistance level near $0.00002978, as shown in the chart below.

*SHIB/USDT 4H price chart. Source: TradingView*

Extended rally ahead?

The Shiba Inu chart also showed traders’ intention to accumulate SHIB tokens when its price tests the 20-4H exponential moving average (20-4H EMA; the green wave) as support.

For instance, the cryptocurrency crashed by over 40% on Thursday as Shiba Inu’s addresses worth 1 million–10 million SHIB dumped over 31 billion tokens, the largest in six months, as per Santiment data. However, the price recovered as traders started accumulating SHIB tokens near the 20-4H EMA.

Additionally, Shiba Inu’s ongoing retracement took cues from a potential correlation between the 1million–10 million SHIB address dump and its price. Santiment noted that Shiba Inu’s price rebounds every time after SHIB millionaires dump their holdings, as shown in the chart below.

*Shiba Inu supply distribution. Source: Santiment*

That shows micro traders’ intention to absorb massive selloffs.

Retail sentiment moons

The bullish retracement in the SHIB market coincided with a rising number of internet queries for the keyword “Shiba Inu,” as per Google Trends.

Web data shows a rise in the Shiba Inu trend in the United States on a 12-month interest timeframe, signaling booming retail interest. At 92, the trend is closer to the peak popularity score of 100, last seen in the second week of May. It indicates that more internet users are looking for information on Shiba Inu.

*Google searches for "Shiba Inu." Source: Google Trends*

Nevertheless, the internet queries for the keyword “how to buy Shiba Inu” came out to be only 18 in the same period. Nonetheless, compared to the previous week, the interest shot up by 260%.

Tale of two indicators

On a technical front, SHIB’s latest rebound move appears to have invalidated a bearish setup that Cointelegraph discussed in one of its previous coverages.

Specifically, SHIB’s price broke bullish out of an otherwise bearish descending triangle pattern as it closed above the structure’s upper trendline with a rise in trading volume. While the breakout still awaits confirmation, it has boosted the prospects of bullish continuation.

The reason for an extended upside is a makeshift bull pennant, which typically sends the price higher by as much as the height of the previous upside move. In other words, SHIB’s breakout above its bull pennant pattern could send its price to $0.00004713.

*SHIB/USDT 4-hour price chart featuring bull pennant setup. Source: TradingView*

Meanwhile, should the price slip back inside the pennant range, it would risk reactivating the descending triangle setup. In doing so, SHIB may eye a correction toward $0.00002195, followed by a negative breakout move toward $0.00001000.

Shiba Inu is now a top-20 cryptocurrency with SHIB price soaring 300% in 9 days

October 9, 2021 Coin Telegraph

Altcoin Analysis

The Dogecoin spinoff sprinted past popular blockchain protocols like Stellar and Polygon to become an $11 billion crypto project.

The run-up in the price of Shiba Inu (SHIB) so far in October pushed the SHIB token to become the 20th largest digital asset by market capitalization.

Shiba Inu's circulating market valuation jumped to $11.08 billion earlier this week and is currently above $10 billion, putting it in the top-20 by market cap for the first time. As a result, the Dogecoin-inspired meme cryptocurrency became more valuable than popular blockchain projects like Stellar (XLM), Polygon (MATIC), and Tron (TRX).

*SHIB market cap versus price. Source: Messari*

The growth in Shiba Inu's valuation came on the heels of a tweet published by Elon Musk. On Oct 4, the Tesla CEO posted the picture of his pet dog—a Shiba Inu breed—with the caption "Floki Frunkpuppy." SHIB jumped by more than 40% an hour after the tweet.

Floki Frunkpuppy pic.twitter.com/xAr8T0Jfdf
— Elon Musk (@elonmusk) October 4, 2021

Crypto speculators tend to read too much into Musk's tweets. For example, the billionaire entrepreneur was instrumental in pushing Dogecoin (DOGE) price higher earlier in 2021 via Twitter.

SHIB price surged by almost 400% a week after opening the fourth quarter of 2021 at $0.00000725. In doing so, the token retested its five-month high of $0.00003528 on Oct 7.

Nevertheless, SHIB underwent a 40%-plus price correction on the same date as some traders decided to unwind their spot positions for interim profits. As a result, Shiba Inu's market cap fell in tandem, going to as low as $8.06 billion on Friday.

*SHIB/USDT daily price chart. Source: TradingView.com*

The sell-off across Shiba Inu markets (against the dollar and Bitcoin) prompted buy-the-dip sentiment. A rebound rally ensued, which pushed the SHIB price up by more than 45%. At its highest on Saturday, the token was changing hands for $0.00003020, with its market cap around $10.73 billion.

What is next for SHIB?

Shiba Inu price dropped on Oct. 9 by more than 5% to reach a fresh intraday low of $0.00002575. In doing so, the cryptocurrency hinted at forming a potential descending triangle pattern, suggesting additional losses ahead.

In detail, Descending Triangles are typically bearish patterns that form when the price trends lower while fluctuating between an area defined by two converging trendlines: one falling and the other, horizontal, such as the ones SHIB has formed in the chart below.

*SHIB/USDT four-hour price chart featuring descending triangle setup. Source: TradingView.com*

The formation of lower highs atop a standstill support line indicates weakening buying sentiment among traders. As a result, the price ultimately tends to break below the horizontal trendline. In doing so, its target shifts to a level at a length equal to the maximum Triangle height.

In other words, SHIB price may go under $0.00001000 in the coming sessions if the abovementioned support level fails to hold.

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

October 8, 2021 Coin Telegraph

$<div>'Much ow' ahead? Dogecoin chart fractal puts Shiba Inu's 390% QTD rally in danger</div>$

Altcoin Analysis

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.

*DOGE/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.

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 SHIB to 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."

Cardano risks 60%-90% drop, warns trader with ADA painting a classic bearish pattern

July 30, 2021 Coin Telegraph

ada

Spotted by veteran analyst Peter Brandt, the classic technical pattern can result in ADA price losing almost 90%.

Cardano is close to attaining the title of a fully-fledged smart contracts platform following a critical upgrade in mid-July. The project's founder Charles Hoskinson confirmed that they recently processed the sales of more than $10 million worth of non-fungible tokens atop their public ledger.

Moreover, an NFT and DeFi Marketplace called the Spores Network, which raised $2.3 million in a fundraiser, said it would deploy its services atop the Cardano chain for lower transaction costs, lower carbon footprints, and higher transaction throughput.

But the Ethereum rival's growth as a project might not lead to higher adoption for its native cryptocurrency, ADA, at least according to an analysis shared by Peter Brandt, the chief executive of global trading firm Factor LLC.

A 60%-90% crash ahead?

The veteran analyst shared a bearish setup for ADA in a tweet published Friday. He cited a classic technical pattern, known as Head and Shoulders, to predict a downside scenario for the Cardano token that is already up more than 600% on a year-to-date timeframe.

In detail, Head and Shoulders forms when the price forms three consecutive peaks atop a single support level, with a condition that the middle peak is higher than other two, which are typically of the same height. The price eventually breaks below the support levels—also called neckline—and falls by as much as the maximum height between the middle peak's top and the support level.

ADA visibly fits the description, as shown in the chart shared by Brandt.

*Cardano's head and shoulder setup. Source: TradingView.com, Peter Brandt*

The analyst envisioned the ADA/USD exchange rate to drop as far as $0.12, down 90% from the pair's current bid near $1.26. A percentage-based calculation of the Head and Shoulders pattern marked its profit target near $0.35, down 60% from its neckline.

Brandt recalled his record of predicting market tops to add strength to his depressive Cardano prediction. For instance, one of his analyses from 2018, involving Litecoin, corrected spotted a descending triangle setup following the altcoin's run-up from $4 to $420 during the 2017's bull run.

"I remember being scoffed at unmercifully when I identified this top in LTC/USD back in mid 2018," Brandt tweeted. "Hey Cardano trolls, take aim."

But can 2018 repeat?

The crash that followed the 2017 bull run originated primarily because of the so-called initial coin offering bust. A study conducted by Statis Group noted that more than 80% of blockchain startups that raised funds in Bitcoin, Ether, and other top coins of that time, failed to turn up a working product.

Meanwhile, a majority of them turned out to be outright scams that sold the raised crypto capital, thus creating a downward pressure on the entire market. Litecoin, Bitcoin, and Ether crashed by more than 80% in 2018 as the ICO FUD pushed investments out.

In contrast, the 2020 bull run came in the wake of macroeconomic blunders. The Federal Reserve's efforts to contain the economic aftermath of the Covid-19 crisis saw it launching an unprecedented quantitative easing program. As a result, near-zero interest rates and $120 billion worth of asset purchases sent investors looking for better alternatives in riskier markets every month.

As a result, Bitcoin boomed from below $4,000 in March 2020 to above $65,000 in April 2021. Meanwhile, altcoins, which tend to tail Bitcoin trends, surged likewise. Cardano's ADA was one among them; it is now trading more than 7,000% higher from its mid-March bottom.

The 30-day correlation between Bitcoin and ADA stands near 0.85 above zero, per data provided by Crypto Watch.

Simon Kim, CEO of crypto venture fund Hashed, told Cointelegraph in March that the 2020-2021 crypto market is entirely different from the one from 2017-2018, noting that the market now is running on a completely different fundamental. He said:

"Firstly, various DeFi projects are creating value based on a clear business model. Secondly, we’re seeing record active investment by institutional investors, and finally, various on-ramps and off-ramps, including not only PayPal and Visa but also large banks, are now emerging.”

Rekt Capital, a pseudonymous market analyst, noted that ADA needs to close above its weekly close of $1.30 to confirm its long-term bull trend. Cointelegraph's Rakesh Upadhyay also pointed out that a break above $1.33 would increase the Cardano token's potential to extend its upside target towards $1.90.

"Conversely, if the price turns down from the current level or the overhead resistance and slides below $1.20, it will indicate that bears continue to sell at every higher level. That may result in a retest of the critical support at $1," Upadhyay warned, nonetheless.

Ethereum eyes rally to $3K, with 39% ETH price rebound triggering a classic bullish pattern

July 26, 2021 Coin Telegraph

Ethereum eyes rally to K, with 39% ETH price rebound triggering a classic bullish pattern

Altcoin Analysis

A falling wedge setup, as well as a rumor of Amazon preparing to accept cryptos, also boosts Ether’s upside appeal.

The price of Ether (ETH) jumped to a three-week high on Monday, triggered by similar gains in the Bitcoin (BTC) market that appeared in the wake of rumors about Amazon’s foray into the cryptocurrency sector.

A job posting from the retail giant showed that it is seeking an executive to build its “digital currency and blockchain strategy.” Meanwhile, global media reports have been speculating, based on inside sources that Amazon would start accepting Bitcoin as payments. As a result, the BTC/USD exchange rate surged to its six-week high after the news.

Ether, whose 30-day correlation with Bitcoin stands at 88%, surged likewise on Amazon’s crypto integration rumor. On Monday, the ETH/USD exchange rate soared to an intraday high of $2,390, reaching its highest level since July 8. The pair was up more than 6.7% as of 12:20 GMT.

*Ether bottomed out twice in a row near $1,700 in recent sessions. Source: TradingView*

However, measuring from its previous bottom of $1,720 on Tuesday, the net upside rebound came out to be 38.94%. The retracement looked strikingly similar to the bullish price action between June 22 and July 7, wherein ETH/USD rebounded by more than 40% after bottoming out at $1,700.

That said, Ether bottomed out twice near the $1,700 range before rebounding higher by 38%–40%. Analyst Jonny Moe spotted that mirrored retracements move and ruled them out as a double bottom pattern.

The bullish setup

In detail, double bottoms are bullish trend reversal patterns, consisting of two troughs around the same level hanging by a neckline resistance. As it plays out, the price eventually flips the neckline resistance as support and rallies higher by as much as the maximum pattern’s height.

Ether fits the description. It has formed two consecutive bottom levels at around $1,700. Meanwhile, its neckline resistance is near $2,390. Therefore, the maximum pattern’s height is $690.

*Ether's double bottom setup envisions price at or around $3,000. Source: TradingView*

Should the ETH/USD rate break above the $2,390 neckline resistance, accompanied by a spike in volume, the pair will be expected to extend its upside move by approximately $690. That would roughly take it toward $3,000 (with $2,948 serving as a psychological bullish target based on historical price action).

Confluence

Another technical pattern in play outdoes the double bottom setup’s upside target by predicting Ether prices at near $3,250.

Dubbed as a falling wedge, the pattern develops when the price trades lower inside a range that begins wide but contracts during the downtrend. It eventually prompts the price to break bullish while setting up its profit target at a level situated typically above the wedge height (if measured from the breakout point).

*Ethereum's falling wedge setup. Source: TradingView*

So, it appears, the ETH/USD exchange rate is undergoing a bullish breakout confirmed by a high-volumed close above the wedge resistance trendline. The profit-taking target for the current setup is $1,208 above the breakout level, which puts the price en route to $3,257.

Altcoin Analysis

Welly's adoption, burn party, other bullish catalysts

Next Shiba Inu hype in focus: metaverse

Extended rally ahead?

Retail sentiment moons

Tale of two indicators

What is next for SHIB?

SHIB resumes uptrend

A 60%-90% crash ahead?

But can 2018 repeat?

The bullish setup

Confluence

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