A Tight Technical Leash On Shiba Inu?

If you want a friend, get a dog. But if you want a speculative investment that won’t bite back, think twice before buying meme-crypto Shiba Inu (CCC:SHIB-USD).

Concept red tokens for the Shiba Inu (SHIB) cryptocurrency.
Source: Shutterstock

And if better judgment doesn’t prevail, don’t stray from the SHIB coin price chart.

In a crypto market numbering in the tens of thousands of professed next big things, some are more strongly positioned than others to succeed.

Today, Ethereum (CCC:ETH-USD) and Bitcoin (CCC:BTC-USD) are the market’s standouts if for no other reason than valuations that dwarf the competition.

Both digital assets of course also have other advantages too. Ethereum is the gold standard right now for the decentralized finance (DeFi) movement.

At the same time, many see BTC as a new gold standard of sorts when it comes to safe haven investments. We’ll see about that. But at least a couple pizzas have been bought in Bitcoin, right?

Right now and most importantly, if the digital asset arena were a game of baseball, this market is only in the first or second inning of play.

It’s way too early to know who the next Amazon (NASDAQ:AMZN) within the crypto market will ultimately be.

As much and amid all the self-important hype surrounding cryptos improving this or that or maybe offering the chance to own the next Mona Lisa vis-à-vis the non-fungible tokens market, it’s a speculators’ game.

Cryptos most far-reaching utility remains trading a fiat currency into a token or coin and hoping for a profitable outcome. Not that there’s anything wrong with that, but it should acknowledged going in.

Still and if you’re going to play, in a world where most of today’s digital assets will arguably go on to crap on their longer-term owners, you can reduce that lengthy list of doomed prospects by one and avoid SHIB coin.

To be fair to Shiba Inu, there are surely more silly and shady crypto investments out there. And understandably so.

The sheer number of digital assets popping up each and every day warns of bad actors and Brooklyn Bridge like sales being consummated left and right.

But as a coin developed as the heir apparent to Dogecoin (CCC:DOGE-USD) and as close to a meme stock in cryptos as you’ll find courtesy of Tesla’s (NASDAQ:TSLA) Elon Musk and Redditors’ doing his bidding, don’t say you haven’t been warned in Shiba Inu.

Bottom-line, unless “Dogecoin killer” resonates with you because you’re more ape than bullish investor or trust SHIB coin has some kind of intrinsic worth that doesn’t frame itself around being part of a ship of fools, I’d strongly suggest sticking to the price chart.

Shiba Inu Weekly Price Chart

Shiba Inu (SHIB-USD) bear market possibly completing off 76% retracement level
Source: Charts by TradingView

Personally and if it wasn’t obvious, as a buy and hold investment I wouldn’t touch SHIB with a 10-foot pole.

Still and for speculators willing to allocate very modest risk capital towards the coin on the merits of its price chart, a bullish swing trade could set up shortly.

Technically and as the illustrated weekly chart of SHIB reveals, the coin has formed an engulfing bottoming candlestick.

Stationed just beneath May all-time-high and having the 76% Fibonacci level as support, a pattern breakout above .00004 confirmed with a stochastics crossover is the type of price action that could complete SHIB’s bear market of the last two months.

On a rally, I’d begin taking profits on a challenge of the base’s 50% retracement level. As important and given today’s overall message, don’t let a dogged Shiba Inu crap on your portfolio if today’s decent-looking bottom fails to live up to the promise.

On the date of publication, Chris Tyler holds (either directly or indirectly) positions Grayscale Bitcoin and Ethereum Trusts (GBTC and ETHE). The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris Tyler is a former floor-based, derivatives market maker on the American and Pacific exchanges. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits.

Article printed from InvestorPlace Media, https://investorplace.com/2021/12/a-tight-technical-leash-on-shiba-inu/.

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