Shiba Inu coin has offered a new path to investors with its series of unique offerings previously not seen with any other meme cryptocurrency or, for that example, the Dogecoin. The movement on Dogecoin is simply because of buyer interest in participating in a blockchain that is widely accepted around the globe and mocks the leading cryptocurrency BTC.
Simply because Shiba was expected to launch an NFT platform fueled the first leg of the rally, which was later stalled after Elon Musk stated he is not an investor of Shiba Inu coin. Still, the confirmation of the NFT platform has fueled the second leg of the rally from $0.0000281 to $0.00008870. This movement could be sustainable in the long run, but for one, profit booking and retracement are definitely on the table.
SHIB is currently valued at USD 43 billion even after a fall of 18% on intraday trading, while XRP is just 12% far from the current level. SHIB overtook XRP for close to 5 hours. This movement and recent updates surrounding it can make anyone wonder if Dogecoin offers similar prospects or is it time to shift towards a more progressive blockchain and its cryptocurrency.
Similar to Dogecoin, the initial rally on the Shiba token was initiated by the series of tweets by Elon Musk. From historical facts, Shiba was created by an anonymous source named Ryoshi. Because SHIB is an ERC-20 token that initially worked on the Ethereum ecosystem, its website mentioned that 50% of SHIB tokens were locked in Uniswap, a detailed crypto exchange. The other 50% was burned to Vitalik Buterin.
In response to this unlikely and unexpected gift from SHIB developers, Vitalik sent 50 trillion SHIB tokens valued at around 1 billion USD to the covid relief fund of India and burned the remaining 40% supply to a dead wallet. This movement occurred because of a sudden drop in SHIB value but consequently turned SHIB into a highly decentralized cryptocurrency token. Furthermore, developing its NFT ecosystem and subsequent release of two more tokens, namely, BONE and LEASH, has provided users with an insight that Shiba-INU offers much more at the table than any other cryptocurrency network.
Shiba has climbed from its Oct 1st value of $0.00000720 to $0.00007394, which comes out to be a 10x move as of current value. The peak of $0.00008870 was close to 12 x returns.
Are Traders Slowly Shifting from Doge to Shib?
Even on a growth trajectory, Doge has offered close to no returns since May 2021 and hasn’t been able to surpass the Aug 2021 resistance around $0.35. The price action and increasing volume trend have hit a high in SHIB, while the same seems to have vacated Dogecoin. It might theoretically be true that some traders have shifted from Doge to Shib, but it cannot be a complete response to the price movement we are witnessing.
As of 12 pm on 28th of October 2021, we are witnessing a fall of 20% in Shib token, while Doge has raised above 25% in the same time frame. In case the traction at Doge helps it breach the immediate resistance level of $0.35, we can witness an extreme trend reversal with the next resistance at $0.50. Dogecoin has previously hit an all-time high of $0.70 levels, and retesting the level could help it surpass Shib in the near term. Holders of Shib token would be looking for profit booking opportunities.
Should You Hold SHIB Tokens Immediately?
Ideally, one should wait for the current profit booking to take support from a level and respect the support on one-day candlestick charts before going all in. Interested buyers should check the Shiba Inu coin price prediction and current scenario first to track the price of the coin and then go with the averaging technique or buy 10% and add 10% at every swing. Going all in at the current level could potentially trap buyers at such high value locking their investment and hampering the ROI on an immediate basis. 589,661 billion tokens of SHIB make it a highly decentralized cryptocurrency and carry a high scope of hitting three decimal places compared to the four decimal places it is trading right now.
On the higher side, the strong push in buying action and trading volumes of close to 100% of its market capitalization indicates a possibility of SHIB offering another 10X growth in the next year. The growth addition, development of its NFT economy will fuel a new buying sentiment. If SHIB developers add more new features and support a more comprehensive platform, accepting this token beyond 500 billion seems highly unlikely considering current values and sentiment across SHIB tokens.