Hey CryptoPM Fam,
The Shiba Inu community is once again making waves! Recently, Shytoshi Kusama, the lead developer of Shiba Inu, spoke out against misleading claims involving massive SHIB wallets worth billions. This bold move not only stirred discussions in the crypto space but also fueled a significant price surge for SHIB.
đš False SHIB Wallet Claims Addressed
On October 14th, Kusama took to X (formerly Twitter) to address rumors suggesting that certain wallets held enormous amounts of Shiba Inu tokens. He called out these claims as false and provided a simple way to verify such information. Kusama suggested that anyone making such claims should pick a random number between 1 and 100 and transfer that exact number of SHIB tokens to another wallet. If they hesitate or refuse, it's a red flag that the claim is fake.
This strategy has garnered attention from the crypto community, sparking debates and reaffirming the need for transparency within the space.
đ SHIB Price Boosted by 2%
Following Kusamaâs statements, Shiba Inuâs price jumped by 2%, reaching $0.00001799. This rise reflects a renewed sense of trust and interest among investors, especially as Kusamaâs efforts to clarify misleading information came amid broader market optimism. The daily price range fluctuated between $0.00001712 and $0.00001817, indicating strong investor activity and confidence in SHIBâs potential.
đ„ SHIB Burn Rate Soars
In addition to the wallet controversy, the SHIB burn rate skyrocketed by 14570%, with 279 million tokens burned in just one day. Token burns help reduce the circulating supply, potentially driving the price up as demand remains high. This huge burn rate increase has undoubtedly contributed to the bullish sentiment around SHIB.
đĄ Growing Futures Interest and Market Sentiment
The rising SHIB price is also reflected in futures trading. Open interest (OI) in SHIB futures has increased by 7%, reaching $50.33 million, while the volume of derivatives has surged by 40%, hitting $132.78 million. This data shows that both short-term traders and long-term investors are increasingly betting on the future of Shiba Inu.
The combination of Kusamaâs intervention, the massive SHIB burn, and heightened futures activity has created a positive momentum for the token, making Shiba Inu one of the top tokens to watch in the coming days.
SHIBA INU TECHNICAL ANALYSIS:
After analyzing the SHIB/USDT 4-hour chart, here are the insights and a trading strategy based on patterns and price action:
Key Patterns Observed:
Head and Shoulders (H&S) Pattern:
The chart shows a Head and Shoulders reversal pattern at the left side (from late September), indicating a trend reversal after a downtrend. This suggests a potential bullish move after the neckline break.
Ascending Triangle:
Post the right shoulder, SHIB has formed an Ascending Triangle between October 10th and 15th, which is a bullish continuation pattern. It recently broke out of this pattern, confirming a potential uptrend.
Higher Lows (HL) and Higher Highs (HH):
The chart displays a series of Higher Lows (HL) and Higher Highs (HH) after the breakout, signaling an uptrend continuation.
Fibonacci Levels:
The retracement levels have been respected, with SHIB bouncing from key Fibonacci support levels around $0.00001605 and $0.00001548, which aligns with the continuation of the uptrend.
Bullish RSI:
The Relative Strength Index (RSI) is showing strength, hovering above 60, which indicates bullish momentum but also nearing overbought levels.
Trading Strategy:
đ Entry Point (Buy Signal):
Buy Entry: After the breakout from the ascending triangle, SHIB is testing resistance at around $0.00001885. If SHIB can break and close above this resistance level with strong volume, it can signal another leg up.
Confirmation: Wait for a retest of the breakout level around $0.00001860 - $0.00001870 for a safer entry.
đŻ Take Profit Levels (TP):
First Target (TP1): $0.00001950 - this is the first psychological level where SHIB might face some resistance.
Second Target (TP2): $0.00002169 - This is the next major Fibonacci extension level (1.618) and could be the upper target in a strong bullish scenario.
đ Stop Loss (SL):
Place your stop loss below the last Higher Low (HL) and the ascending triangle support, around $0.00001760. This level is key as breaking below this might invalidate the bullish move and signal a potential reversal.
đč Risk/Reward:
With an entry around $0.00001860, a stop loss at $0.00001760, and a first take profit at $0.00001950, the Risk/Reward Ratio is around 1:3, making this trade relatively favorable.
Conclusion:
Bullish Bias: The ascending triangle breakout and the higher lows suggest a continuation of the uptrend. The RSI is showing strength, but keep an eye on overbought conditions.
Entry Strategy: Wait for a clean breakout and retest above $0.00001860 before entering. Use tight stop loss to protect your capital and aim for higher targets if bullish momentum continues.
Good luck with your trading! Always monitor the market for any sudden reversals and adjust your strategy accordingly.
That's it for today folks,
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