The meme-based cryptocurrency Shiba Inu (SHIB) soared 35% after the token made its debut on the American share trading app, Robinhood.
SHIB’s value surged from $0.000022 ($0.000029 AUD) to $0.000030 ($0.000040 AUD) in just 3 hours before shedding some of its gains and evening out at $0.000027 ($0.000036 AUD).
According to data from analytics platform, IntoTheBlock — Shiba Inu’s substantial rally was assisted by a large group of long-term holders accumulating large amounts of the token over the past few months.
The platform showed that the number of long-term SHIB holders had been gradually increasing their holdings despite the broader crypto market’s lackluster performance. If true, this is good news for SHIB investors/’long term gamblers’.
Will SHIB’s Rally Last?
Put very simply, SHIB’s rally probably won’t last long. Despite the good news about SHIB being bought up by long term holders – which shows sustained interest in the project – the experts aren’t particularly excited about SHIB’s prospects over the next few weeks.
Cointelegraph analyst, Yashu Gola says that Shiba Inu is still very much in a downward slump, and predicts that the token will crash through the $0.000012 ($0.000016 AUD) mark in the coming weeks – an impressive 60% decrease from today’s price.
Unless the overall market conditions change and everyone starts funnelling cash into altcoins again, it seems pretty unlikely that SHIB will gain in price from here.
SHIB belongs to a class of cryptocurrency assets known as memecoins or “sh*tcoins” and they tend to be on the more risky side. However, when tokens such as SHIB or its predecessor, DOGE, have strong communities and large groups of convicted holders, investors can see strong rewards from owning the token.
The popularity of memecoins is mostly generated by FOMO and hearing stories like: “the greatest trade of all time,” where one SHIB investor managed to turn $8000 USD ($11171 AUD) into $5.7 billion ($7.9 billion AUD) after purchasing 70 trillion tokens (13% of the total supply) when SHIB launched on August 1, 2020.
At the end of the day, investing in tokens like SHIB is ultra risky, and because the cryptocurrency has a $15 billion ($20 billion AUD) market there’s essentially a 0% chance that you will 10X your money by investing in it today. Unless you’re an experienced trader, who understands technical analysis, how to read charts and you can accurately interpret short-term price signals – all investing in SHIB and other meme coins should be treated like gambling.