The Shiba Inu Coin Faces ‘Reversion’ Worthy of Parabolic Rise.
Send the dog tokens to the doghouse.
Some cryptocurrency analysts believe the meteoric growth of dog-themed tokens like dogecoin (DOGE) and shiba inu (SHIB) this year is nothing more than speculative froth, which might jeopardise the fast-growing digital-asset industry's legitimacy.
These "dog tokens" or "meme tokens" were made as a joke, but they've gained a large following of investors and enthusiasts. As a result, they're still not taken as seriously as other cryptocurrencies that are seen as forerunners of the fast-moving blockchain technological revolution.
In a note published Wednesday, Bloomberg Intelligence commodity strategist Mike McGlone wrote, "We suggest the sooner the better for the speculation machine coins to suffer some cleansing, so that we can continue on with the adoption process of crypto assets in investment portfolios."
Both DOGE and SHIB were trading significantly below their all-time highs earlier this year when the newest calls were made.
The DOGE price was around 23 cents at press time, down from an all-time high of around 74 cents in May.
The shiba inu coin — a dogecoin clone that uses the same Shiba inu dog breed as its emblem – is currently worth roughly $0.00004845, down 45 percent from its all-time high of $0.00008854 on Oct. 28, based on data from TradingView.
Price of Shiba coins
SHIB jumped 70% in a single 24-hour period in October, reaching a market valuation of almost $39 billion. The price increase coincided with a petition on the website Change.org to list SHIB on the retail trading platform Robinhood.
Professional cryptocurrency analysts remain skeptical of SHIB.
McGlone, who correctly forecast bitcoin's growth to over $50,000 in 2020, warned on Wednesday that the SHIB token's price might experience a "reversion befitting of its parabolic spike."
Shiba inu tokens, which have a market valuation of roughly $40 billion and are ranked No. 9 on CoinMarketCap, may be enjoyable for speculators, according to the Bloomberg analyst. The dogecoin clone, on the other hand, appears to be a "example of excesses among 13,000 cryptos."
He went on to claim that the shiba inu coin is a "unique blend of exploitation, clever marketing, ESG, supply [vs] demand economics, and gambling on an unprecedented 24/7 global scale, and confronts reversion worthy of its parabolic rise," and that it faces "reversion worthy of its parabolic rise."
"The fact that memecoin has made its way onto our radar puts shiba inu in a similar position to dogecoin in May, just before its collapse," McGlone adds.
McGlone said that the aggregate market value of dogecoin and shiba inu coin appears to top out above $80 billion on a regular basis; it happened earlier this year in the run-up to April and May, and again approximately a month ago.
Shiba inu crypto
McGlone contrasted the dog dynamic with recent market support for bitcoin (BTC) around $60,000 and ether (ETH) around $4,000, according to the report.He stated, "Some meme coin cleansing may put pressure on the stalwarts as a necessary part of the expanding, strengthening ecosystem."
The SHIB cryptocurrency, according to Mati Greenspan, CEO of Quantum Economics, has yet to show itself.
"On hype alone, SHIB has gotten about as far as it can go," Greenspan said. "Only the network's development can provide future value. To begin, they'll need to leave the Ethereum platform and develop their own blockchain and other products."
What is a SHIB whale?
A transaction record on the Ethereum blockchain earlier Wednesday revealed a transfer of 170 billion SHIB coins worth roughly $8 million.
The transaction grabbed the attention of the website Watcher.Guru, which described the transfers as a purchase made by a "whale," a term used in the crypto business to indicate someone who has a large number of tokens.
The item got 864 retweets and 2,934 likes in a subsequent tweet from the Watcher.Guru account.
AMC Theatres' CEO indicated earlier this week that in 60 to 120 days, the movie theatre chain will accept shiba inu coins as payment using BitPay wallets.
The events, on the other hand, did little to agitate the SHIB market, effectively letting the sleeping dog lie.
SHIB was listless as of press time on Wednesday.