Shiba Inu ($SHIB) Rally Could Signal Impending Downtrend, Analyst Suggests

Shiba Inu Could Be Headed for a Downtrend, Says Analyst

A pseudonymous cryptocurrency analyst, Cheds, has suggested that Shiba Inu ($SHIB), the meme-inspired cryptocurrency, may soon enter a downward trend. Cheds points to a potential short setup in the near future, as SHIB’s recent rally may have attracted bullish investors hoping for continued growth. Furthermore, Cheds highlights a potential blow-off top on the four-hour chart, indicating a waning bullish momentum. In the last 24 hours, SHIB has seen a 5% decline, along with a slight drop in other altcoins such as BNB and Dogecoin ($DOGE).

Key Points:

SHIB’s recent rally may have enticed bullish investors, but a downward trend could be imminent.
A potential short setup is being suggested by analyst Cheds.
SHIB’s bullish momentum appears to be waning, with a potential blow-off top on the four-hour chart.
SHIB has seen a 5% decline in the last 24 hours, along with other altcoins like BNB and DOGE.
A withdrawal of 3.3 trillion SHIB tokens worth over $28 million from centralized exchanges has been seen as a drop in available supply.

Tokens moving off of exchanges is generally seen as positive, indicating a reduction in supply available to meet demand. If supply continues to decrease and demand increases, the price of SHIB could rise. Additionally, SHIB’s developers have introduced the beta version of the Shibarium bridge, a layer-2 scaling solution. This bridge will allow users to move their assets from Ethereum to Shibarium, reducing supply and potentially boosting the price of SHIB through a token burning mechanism in which tokens are sent to Dead Wallets.

Hot Take: While SHIB’s recent rally may have excited bullish investors, it seems that the cryptocurrency could be heading for a downtrend. With waning bullish momentum and a potential blow-off top, caution may be warranted for those considering a short position. However, the withdrawal of tokens from exchanges and the introduction of the Shibarium bridge could still impact SHIB’s price in the future.