STORY OF TWO VERY PROMINENT SPACE DOGS
Once upon a time, as far back as 1957, the world was a very different place with the ongoing Cold War between two dominant Empires of the post WWII era: the so-called Capitalist Block (The US and their allies) and the Communist Block. The communists had invested ungodly amounts of money into their monumental Space Program as a vital part of a crucial Moon Race. Think Nuclear War. First steps of the program consisted of sending rockets filled with live animals, mostly dogs, into space. Dozens of such missions took place but only one dog became a household name for orbiting the Earth first. Her name was Laika (pron: WHY-Kha) and if you ask your parents or grandparents, they will tell you all about it. The heroic animal was and still is being taught about in schools in my neck of woods and it might be the most famous creature in the history of mankind, at least in my mind.
Well, at least it was until now. Nowadays times are very different but once again large portions of the planet's population are somewhat imprisoned in some sense, and there are no more famous celebrity dogs to write home about. All we got left are memestock cryptocurrencies such as: DOGE (DOG/USD) and SHIB (SHIB/USDT). Tha latter one was the hottest asset of the first week of October hitting the ATH value of $0.00003528 on 7th Oct. It has had a bit of a correction since but remains the most talked about crypto-asset (On Twitter, most mentions beating BTC again). SHIB's value has grown by 278% compared to a month ago. Oh, I just realised That I forgot to mention that the communist celebrity dog died 5-7 hr into the flight from … overheating. Which brings me to a point where I need to address the most important question for SHIBA investors: what's next for the doggie coin's value.
HYPE, MEMES, LISTINGS, TOKEN BURNS...
It is guaranteed to keep getting hyped up in the coming weeks with announcements such as Robin Hood listing, new projects added to the growing ecosystem (it's ERC20, same technology as ETH (ETH/USD)), and more and more burning which seems to be one of the main talking points in the online SHIB communities. I noticed that one question needs claryfying when it comes to gauging the potential max value of the stock. SHIBA INU is already a relatively large cap crypto (market cap: $13.6B). Now, too many people who have been FOMOing IN seem to have no clue about the market capitalization and its implications on potential limitation to the growth of the token. Put it this way, '$0.01' is a fantasy being sold to inexperienced 'investors'. To only remove one zero from the price (to 10X), the market cap of SHIB would have to be at $136B, meaning it would be larger that the combined market caps of XRP (XRP/USD) and USDT. Sounds likely? I hope I helped.
After such explosive growth in recent weeks, what comes next for the 12th largest cryptocurrency (according to coingecko.com)? The price is undoubtedly in a phase of discovery at the moment only one week after setting its ATH. Behind the scenes, there already has got to exist a strategy to distribute massive amounts of the asset that was being heavily accumulated on multiple ocassions dating back to May and even earlier. These people know to sell when the market is extremely greedy and this process is certain to have started in recent days. Which doesn't directly point to further correction as we are 'bang' in the middle of the BTC Bull Run and possibly on a brink of a highly anticipated alt-season (which seems to be on already for select alts such as DOT (DOT/USD) or MATIC (MATIC/USD) and a dozen of other ones. Shorting SHIB should be out of question when we consider mid-term and long term perspectives.
TECHNICAL STUFF FOR THE UPCOMING WEEK
As for the upcoming week or possibly days, I've found a solid pattern to focus our attention on, with multiple touches on both trendlines originating from the ATH high on the 7th Oct. The price is currently likely to stay inside of this triangle for a couple of days and when it finally breaks, a window of opportunity might be opened for us to take advantage of, IF all the conditions are met:
- the price breaks above the MA-50 (purple line)
-it continues to go up eventually breaking the upper trendline
-the volume increases considerably (remember, the high trading volumes leading up to the ATH and expect at least a very solid spike to get a confirmation)
-the RSI flips reversing a week long downtrend
-to make this set-up even tighter and more secure, wait for the price action to get above the think red line and close three or four hourly candles before execution.
Always remember to set-up stop losses in order to minimise the risk. Do your own research
This set-up means that if the Shiba Inu's price goes our way and meets all the above criteria, we will have received the required multiple signals of strenght and we would also have the most important moving average, the 50 day as well as an area below as potential support to fall back on and maybe even get a bounce. Stop losses could be best positioned someplace below the 50 MA. Don't forget the triangle pattern is only seven days old, treat it accordingly.
Happy trading! Another update on the very exciting SHIBA INU next week and by that time we will have found out much more about the immediate future of the most ambitious dog of our generation. Stay tuned, I promise no more lectures on history.
Disclaimer: This trading analysis is provided by a third party, and for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice.