Coin Burning Strategy Should Get Shiba Inu Out Of the Doghouse

Coin Burning Strategy Should Get Shiba Inu Out Of the Doghouse

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It’s unfortunately that dog-themed altcoin Shiba Inu (CCC:SHIB-USD) is considered a joke by some traders. Sure, Shiba Inu started off as a meme coin, but let’s not ignore the token’s evolution into a much more serious crypto asset.

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Perhaps some investors are deterred by the coin’s low price. As we’ll see, it’s far below a penny, or even a hundredth of a penny.

This means that the Shiba Inu token is prone to rapid price swings. Therefore, all positions sizes should be small – please don’t load the boat on this one.

That being said, it’s perfectly fine to accumulate some SHIB coins for their strong growth potential. Plus, they can be useful as a hedge against dollar inflation – a point reinforced by a well-considered token-pool-reduction strategy.

Analyzing the Shiba Inu Price

The first thing to bear in mind is that the Shiba Inu coin price will often follow the path of Dogecoin (CCC:DOGE-USD).

This makes sense, since Dogecoin is the more famous and well-established of the two dog-faced tokens. So, be sure to monitor the price moves of both coins.

Next, there’s no getting around this topic: Shiba Inu tokens are dirt cheap.

Practically anybody can afford to make an investment – heck, you can probably buy a million SHIB coins right now. The price was 0.000704 cents ($0.00000704) as of Sept. 29.

Just to give you a comparison, DOGE was 20 cents on that day.

There was a time, back in May, when the Shiba Inu price flew to 0.003431 cents, or $0.00003431.

So, 0.003 cents could be an aggressive but reasonable price target for the long-term “HODLers” (holders of the coin).

And if your time horizon is long enough, you might envision SHIB getting to a full penny – or zero, if you’re on the other side of the trade.

Coinbase Clout

Some commentators will claim that Shiba Inu’s recent listing on Coinbase Global’s (NASDAQ:COIN) cryptocurrency exchange should be considered the headline story.

I’ll grant that it was a real game changer when Coinbase revealed that SHIB would be available for trading on Coinbase Pro starting June 17.

Coinbase’s Sept. 16 blog posting reinforces this point. On that day, the company made the Shiba Inu coin available on Coinbase.com and in the Coinbase Android and iOS apps.

Clearly, this little coin has come a long way since its launch in August of 2020.

Getting a full Coinbase listing – not to mention tweets from the likes of Elon Musk and Vitalik Buterin – has raised SHIB’s profile and earned it some respect.

The Coinbase clout has also buoyed the token’s price. Simply getting listed on Coinbase Pro caused the Shinb Inu price to soar 28.87% in just one day.

Burning Desire for Higher Prices

In the long run, however, I’ll contend that Coinbase’s influence won’t be the primary catalyst for higher SHIB prices.

Rather, it will be the Shiba Inu token’s value as a hedge against the dollar’s inevitable decline in value.

Remember, the annualized U.S. dollar inflation rate has been 5% or greater for four consecutive months.

While the government continues to print up dollars, Shiba Inu’s developers are taking swift action to prevent the cryptocurrency’s devaluation.

Not long ago, the project’s developers announced what’s known as a coin burn.

This means that a coin holder transfers a portion of his or her assets to a wallet which nobody can access. In effect, this destroys those coins and thereby reduces the cryptocurrency’s total supply.

SHIB started with a supply of 1 quadrillion, but the Shiba Inu team gave 50% of it to Buterin, who burned most of that in a “dead wallet.”

Recently, the token’s developers tweeted that they “have implemented a burn procedure to reduce” the supply.

Moreover, they revealed a $25,000 SHIB burn that has already taken place.

The Bottom Line

Traders should keep an eye out for more coin burns in the near future. In the dynamic between supply and value, less is definitely more.

Sure, it’s possible to own Shiba Inu tokens for their moon-shot potential. After all, a timely tweet could send the price higher instantly.

If you’re not seeking quick gains, though, then you might consider holding SHIB as an inflation hedge.

You’ll have the backing of the coin’s developers, who are serious about keeping the supply under control.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

The post Coin Burning Strategy Should Get Shiba Inu Out Of the Doghouse appeared first on InvestorPlace.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Dogecoin-killer Shiba Inu prepared to rally again with launch of 10,000 NFTs on ShibaSwap

Shiba Inu announces sale of 10,000 randomly generated NFTs available for sale on ShibaSwap.

Buyers will be able to name their Shiboshis by burning SHIB tokens, further reducing the tokens in circulation.

Dogecoin millionaire Glauber Contessoto currently holds nearly $2 million worth of DOGE tokens and is reluctant to sell.

Analysts have noted declining interest in Shiba-Inu-themed cryptocurrencies: Dogecoin and Shiba Inu token. However, the latest developments in the Shiba Inu ecosystem are set to drive scarcity in the circulating tokens.

Shiba Inu jumps on the latest crypto trend, announces launch of NFTs

Shytoshi Kusama, developer and leader of the Shiba Inu token ecosystem, announced the launch of 10,000 NFTs on decentralized exchange ShibaSwap. The collection of randomly generated NFTs is named “Shiboshis.”

The new product release in the Shiba Inu ecosystem is only available for LEASH holders. The sale ends within 24 hours.

Further, each buyer has the ability to change the name of the Shiboshi they buy by burning SHIB. Shytoshi refers to SHIB, BONE and LEASH tokens as the “Shib Token Trifecta.” The announcement drops hints of another launch in the gaming or play-to-earn ecosystem.

Shiboshis are coming. Learn more about them, why you might want some $LEASH for the drop, and why I’m so pumped about @NOWPayments_io making Shib available in this new MEDIUM! https://t.co/gQhIdUJqVN — Shytoshi Kusama (@ShytoshiKusama) September 24, 2021

With further burning of SHIB, proponents expect a drop in the circulating supply of SHIB tokens, implying an upward climb in the token price.

Alongside SHIB, analysts are bullish on Dogecoin. The Shiba-Inu-themed cryptocurrency produced several millionaires. Glauber Contessoto, a Dogecoin millionaire with nearly $2 million worth of DOGE, is not keen on selling his holdings.

Contessoto is a long-term holder and argues that DOGE price will increase in the future. The millionaire is of the opinion that capitalizing on the dips is key.

There is a drop in the social interest surrounding DOGE and SHIB. Social engagement of DOGE, considered a metric for identifying the demand of the token, has noted a 90% drop since May 2021.

Despite the drop, the ecosystem updates are expected to trigger a rally in Dogecoin and Shiba Inu. Over 660,000 holders in the SHIB network are awaiting an update in October 2021. The launch of Shiboshis is the first step in the direction of new updates in the SHIB network.

SHIB ranked in the top 10 trending coins in Asia last week, based on data from CoinGecko, a crypto data-provider platform.

FXStreet analysts have evaluated the SHIB trend and predicted that there is one last chance for the token to break out. Addresses that purchased SHIB in the past 30 days are currently sitting on unrealized losses, if the price drops further, the downside target is $0.00000300.

Dogecoin, Shiba Inu at Risk of Steep Correction

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Key Takeaways Dogecoin and Shiba Inu’s social engagement metrics have plummeted since May.

DOGE is now sitting on weak support, ready to retest $0.17.

Likewise, SHIB is primed for a downswing to $0.00000582.

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Dogecoin and Shiba Inu have lost the crowd support that allowed them to skyrocket to new all-time highs. Until retail interest is back, both assets could suffer further losses.

Dog Tokens Look Ready to Dip

Dog tokens are losing steam.

DOGE and SHIB surged in tandem earlier this year, posting extraordinary returns ahead of a market-wide crash in May. Along with many other digital assets, both hit all-time highs as retail interest in the space hit a peak.

Data from LunarCRUSH shows that Dogecoin and Shiba Inu’s social engagement metrics soared amid the market frenzy. LunarCRUSH measures social media engagements such as favorites, likes, comments, replies, retweets, and shares. DOGE recorded more than 1.76 billion on May 9, while SHIB hit 122 million.

However, the level of social activity for both assets has plummeted since May. Dogecoin’s social activity is currently hovering around 150 million engagements per day, while Shiba Inu’s is closer to 10 million.

As interest in DOGE and SHIB is weakening, their prices could be facing a steep decline.

Dogecoin Looks Stagnant

Dogecoin’s price action has been stagnant for the past five months. The tenth-largest cryptocurrency by market cap has been recording a series of lower highs while the $0.17 support level absorbs any downswing.

From a technical perspective, it seems that the price behavior has led to the formation of a descending triangle on the daily chart. With DOGE edging closer to the consolidation pattern’s apex, a significant price movement could be imminent.

A decisive daily candlestick close above the triangle’s hypotenuse at $0.26 could result in an explosive breakout towards $0.41. Still, investors need to watch out for the triangle’s x-axis at $0.17 since losing this level as support could see DOGE crash to $0.04.

While the macro outlook points to further stagnation until either support or resistance breaks, the near future looks bearish.

Dogecoin is currently being held by the Tom DeMark (TD) Sequential’s setup trendline at $0.198. This support level is getting weaker over time, suggesting that a violation is near. A break of this level is likely to happen soon, which would likely push DOGE down toward the triangle’s x-axis at $0.17.

Shiba Inu to Retest Support

Like Dogecoin, Shiba Inu has endured a prolonged stagnation period. Its price appears to be contained within a parallel channel on the daily chart.

Every time SHIB has risen to the channel’s upper or middle boundary since Jun. 5, a rejection has occurred, pushing prices to the lower edge. From this point, it tends to rebound, which is consistent with the characteristic of a channel.

SHIB was recently rejected from the channel’s upper boundary and currently trades below the middle trendline. These conditions indicate that if the price action seen over the past month repeats, Shiba Inu will dive to the channel’s lower edge at $0.00000582.

It’s worth noting that SHIB needs to hold to $0.00000582 in the event of a bearish impulse, as closing below this critical demand wall could lead to a 36% correction.

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