Even If Shiba Inu Gets on Robinhood, the Pop May Be Negligible

There has been some talk about Shiba Inu (CCC:SHIB-USD) being added to the Robinhood (NASDAQ:HOOD) trading platform. The cryptocurrency gained traction on the news, but ultimately the gains have petered out. 

A concept image for the Shiba Inu (SHIB) cryptocurrency.
Source: Shutterstock

Still, it’s got investors speculating about what could happen if SHIB gets added to the popular Robinhood platform

I think it very well could be a bullish catalyst — at least initially on the headline. 

The question becomes, will the rally be sustainable? That’s the part that I am not sure about. Of course Shiba Inu being added to a high-growth trading platform is a positive, but we can never rule out a sell-the-news reaction once we get the pop.

SHIB is already available on Coinbase (NASDAQ:COIN), Binance and other very popular crypto exchanges. So it’s not as if traders who want access don’t have access. 

Let’s look at the charts first. 

Trading Shiba Inu

Daily chart of Shiba Inu
Click to Enlarge
Source: Chart courtesy of TrendSpider

You have to remember the volatility associated with Shiba Inu. It fell 14.7% in the three days preceding Saturday, Dec. 4, then at one point, it was down about 28% on Saturday. 

It was a massive wave of selling, but it wasn’t limited to just SHIB. Bitcoin (CCC:BTC-USD) and Ethereum (CCC:ETH-USD) also saw massive declines at the intraday lows. 

In the end, Shiba closed lower by “just” 9.9% and has since stabilized. Its inability to reclaim the 10-day moving average is concerning though, particularly as it lingers just below the prior all-time high from May in $0.0000399 (four zeroes after the decimal).

This coin is caught in a massive falling wedge. Bears will argue that it’s destined to break down. Bulls will say it’s consolidation. 

With Bitcoin, Ethereum and other leaders struggling, it will be difficult for Shiba Inu to find traction. Keep that in mind when trading this. 

On a bullish reaction to a potential addition by Robinhood, we need to keep that prior high from May in mind. A move above it will put SHIB above a key level, as well as the 10-day and 21-day moving averages.

However, I’d love to see a move over $0.00005. That would put the 50-day moving average in play, as well as last week’s high at $0.00005433. 

Above these levels and SHIB could really fly higher. 

On the downside, Shiba is holding right where it needs to. You may remember a few weeks ago I highlighted a key breakout area

This held perfectly on the latest dip. Now the key is to see it continue to hold. Trending below most of its major moving averages, this will need to change in order for Shiba Inu to start trading better. 

A break of the low at $0.00002915 could put the $0.00002 area in play, along with the 200-day moving average. 

Sustainability Is a Question

At the end of the day, more access to Shiba Inu via Robinhood is a positive catalyst for the cryptocurrency. Despite the short-term implications though, one has to ask if it has any sustainability. 

I am reluctant to say that it does. 

It’s too risky to say that it won’t survive, but I have a very hard time believing that this will be the next thriving cryptocurrency. When it comes to that, I’m looking at the leaders like Ethereum and Bitcoin. 

Not only do they act as excellent (although volatile) stores of value, but they also have practical applications. Those applications seem to be growing by the week, particularly as corporations continue to leverage cryptocurrencies and the blockchain. 

So what about Shiba Inu?

It was started as a rival to Dogecoin (CCC:DOGE-USD), which itself was started as a joke. Seriously. So that’s why it’s difficult for me to look at SHIB as anything more than a speculative trade. 

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 Read More: How to Avoid Popular Cryptocurrency Scams

On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.

Article printed from InvestorPlace Media, https://investorplace.com/2021/12/even-if-shiba-inu-gets-on-robinhood-the-pop-may-be-negligible/.

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