Shiba Inu was created in 2020 to offer competition to Dogecoin. Both these meme coins depend mainly on community sentiment and social media news. SHIB is the native coin of this network, and it provided a huge return in 2020-2021, but now both of these meme coins are in a downtrend.
However, Shiba Inu is unsuitable for long-term investment because it does not have smart contract utility or original blockchain technology. That is why it should not be treated as an asset for the long term like Bitcoin and Ethereum, but SHIB can be transferred from one wallet to another. However, the community has started to build many use cases, but most of them have not been applied properly.
Any news can disrupt fundamental and technical analysis, so traders should add SHIB to their watch list for a short-term capital gain during the news and its sentiment on the community.
The meme coin hype started in 2020 when Elon Musk supported Dogecoin. Some Reddit users started to hype Dogecoin to attract mainstream media attention. Popular investor Mark Cuban is also interested in meme coins and Shiba’s theme of ‘Dogecoin Killer.’ At that time, Shiba Inu successfully rode on the popularity of Dogecoin leveraging the market hype.
The hype of crypto markets died this year; most cryptocurrencies observed an outflow. Meme coins become the worst victim of these uncertain circumstances. However, SHIB had an upward trajectory in the last few months but is consolidating within a range. Read our Shiba Inu coin price prediction if you are interested in short-term investment.
At the time of writing this post, SHIB was trading around $0.00001 around the lower Bollinger Bands, which suggests bearishness for the short term. Based on the technical indicators, we think the SHIB price may come to the support of $0.0000099.
If Shiba Inu breaks the support, it can find another support for around $0.0000077. This year, the coin has been consolidating between $0.000013 and $0.0000099. Most technical indicators are bearish, so it is not an ideal time to invest for the short term.
Shiba Inu has a narrow trading range on the weekly chart, and we do not think it is an ideal time to buy for the long term. Indeed, candlesticks are forming around the baseline of the Bollinger Bands, and most technical indicators are neutral. You should avoid meme coins and prefer less risky assets like Bitcoin or Ethereum for long-term investment.
Source: https://www.cryptonewsz.com/shiba-inu-price-analysis-shib-trades-towards-crucial-price-range/