Shiba Inu might see a pump as the price consolidates near the support of 88.6% Fibonacci retracement. It has been a good accumulation level for SHIB so far and can help in the future upward movement of the token. There is a short-term buy opportunity for the meme token and it could give some good profits.
The breakout
As you can see in the daily chart for SHIB above, that the price has consolidated quite a lot from the top. It has almost neared the previous top which is expected to give some good support to the price. This could help in giving a pump to the price of Shiba Inu. Those who have missed the previous run can take advantage of this correction but I am totally against investing in meme coins.
Currently, the retracement from the all-time highs of Shiba Inu also shows another important pattern. It is called the shakeout pattern. Here you can see there has been a lot of ups and downs as the consolidation happened which must have pushed away many investors.
Have realistic expectations from SHIB?
If you are thinking that Shiba Inu is going to give you a lot of profits then you might be right. But do not expect things like 10x-20x at least in the short term. The current market cap of SHIB is around $18B and it doesn’t seem probable that the cryptocurrency is going above the $50B-$60B market cap. So, in that case, a 2-3x is on the card which will also not be easy as Bitcoin is still struggling to hold ground above $50k.
And if you are one of those investors who think SHIB will go to 1 cent. Then sorry to break your expectations it is not happening. I did an article yesterday explaining why. Read here. In short, the market cap of SHIB at 1 cent will be bigger than the entire crypto market right now which is simply not possible.
What are your thoughts as Shiba Inu consolidates near support and might pump real soon? And do you think that it is a good idea to invest in meme coins for the short term? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.
Also Read: UK bans crypto ads by Coinbase, Papa John’s Pizza, and more
