Why Shiba Inu Could Be In Big Trouble

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Last Updated on 4 November 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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Shiba Inu is the talk of the town in cryptoland. Ever since beating Dogecoin as the most popular memecoin in the CoinMarket top 10 last week, the coin has been on everyone’s mind. However, trouble could be brewing on the horizon after a historical rally which saw it rise some 12 million percent in a year and a half (ever since it’s trading debut on August 1st, 2020) could now be coming to a crashing halt.

Firstly, there was the Kraken debacle this Monday. The San Francisco-based crypto exchange claimed it would be listing Shiba Inu on its popular platform for trading if a tweet received 2,000 “likes. The #ShibArmy, the social media group that wants the coin to reach ever greater highs, went to work and by now that tweet has received 80,000 likes.

Unfortunately, Kraken did not keep its promise and there has been some selling pressure for the memecoin since.

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Data points

Secondly, investment site The Motley Fool took a look at the latest memecoin driving investors crazy. When compared to the S&P500, the most reliable stock market indicator combining 500 of the biggest companies in the world, it is easy to see why Shiba Inu is attracting so much attention: with 12 million percent rise since it’s trading debut last August, it makes the 41% gains of the S&P500 look pretty bleak.

However, the respected Wall Street stock surveyor website found a very interesting data point which could spell big trouble for Shiba Inu.

Buy and HODL

In the cryptosphere, you are often advised to buy into Bitcoin (or Ethereum for that matter) and then just HODL (or hold, but then spelled wrongly, a popular crypto joke). For those of us with a lot of time and patience on our hands, that is not so much of a problem. For those of us looking for quick gains from our crypto coins, that is a massive problem.

Now here’s the caveat. Whereas Bitcoin or Ethereum investors tend to buy and HOLD, investors in memecoins have a lot less patience. On average, Dogecoin is held in a crypto wallet for about 50 days, but Shiba for 10 days only.

Shiba Inu hasn’t really moved a lot since its spike around 27 October. 10 days after that would mean Friday 5 November. If that metric of 10 days is correct, the analysts at The Motley Fool expect either another bounce or a crash the coming weekend.