The Shiba Inu price has been under pressure in the past few weeks. The SHIB price has crashed by about 40% from its highest level in October. This drop has brought its total market cap to more than $29 billion. It is now the 11th biggest cryptocurrency in the world.
Shiba Inu is a cryptocurrency that was designed in a bid to take-on Dogecoin. Fundamentally, the coin does not have a major use. For example, it is almost impossible to find companies that accept SHIB.
Therefore, like Dogecoin and Bitcoin, most of the Shiba Inu in existence today are used for investment purposes. Indeed, many people have become relatively rich because of these currencies. For example, this week, a story trended about a retail worker who invested about $8,000 in Shiba Inu and became a millionaire.
While the SHIB price has struggled in the past few days and while its utility value is relatively small traders should avoid shorting it. Shorting refers to the process of betting that a cryptocurrency price will drop.
Shorting Shiba Inu could leave you with more losses than you originally invested in case a short squeeze happens. The same is true for other meme stocks like AMC, Blackberry and GameStop.
So, will SHIB make you a millionaire? It is unclear what the future of Shiba Inu is. Besides, it is a relatively new currency. It also depends on the amount of money that you have today. For example, if you have a $1,000, you want it to rise by more than 100,000% for you to become a Shiba Inu millionaire. This is highly unlikely for now.
If you have $10,000, you need the Shiba Inu price to jump by about 10,000% to move into the millionaire club.
Still, I suspect that the price will have another parabolic rally before the end of the year. This trend will depend on the overall performance of cryptocurrencies.
The four-hour chart shows that the SHIB price has been in a major bearish sell-off lately. The coin has even moved below the 50% Fibonacci retracement level. At the same time, it has formed what looks like a falling wedge pattern while its volume has been in a bearish trend lately.
Therefore, while the obvious prediction of Shiba Inu would be bearish, the falling wedge is a sign that the coin will have a bullish breakout in the near term. SHIB just needs to have a spark and its price will retest its all-time high.
This post was last modified on %s = human-readable time difference 08:17