SHIB has given a headstart to the month of October. The coin has brought cheer to the grumbling space. The second-largest canine coin has plunged ~40% post its rally of 300-400% on the charts. SHIB managed to break into the top 15 crypto list by market cap. The rally has made people believe, the sky to be the limit for meme coins.
Analyst mentions predictions for Shib in the long term. According to technical analysis, Shiba INU is expected to hit $0.00020 by mid-2022. This represents staggering growth of over 900% on the current price. And 0.0061 by December of 2025. Shiba Inu was introduced to the community as an experiment token. Which will be utilized in a DEX called Shiba Swap.
The coin has been receiving an appreciable response in space. And has grown leaps and bounds ever since. The listing of the coin on Coinbase surged the coin by ~35%. Shib has hit the 7,20,000+ holders milestone since Coinpedia reported. Shib’s partnership with Now Payments will help burn a percentage of the token with each transaction. While onboarding the Shib trifecta.
SHIB due for a serious correction?
According to blockchain analytics company Santiment, a memecoin that has risen roughly 400% in the last seven days may be poised for a correction.
The number of Shiba Inu’s (SHIB) active deposits is “very large,” according to Santiment, implying a probable reversal in the future.
“Yellow flags starting here. Extremely high active deposits are suggesting that it’s probably a top forming.”
Despite the fact that SHIB inflow to exchanges is “not particularly high,” the crypto analytics firm believes a reversal is on the way.
Santiment further claims that SHIB traders are not taking profits, implying that traders are wagering on the memecoin’s price rising even higher. Markets frequently “penalise” such overconfidence, according to the firm.
It further says that Higher price peaks are built on lower profit-taking spikes. This could imply that traders are becoming overconfident in price activity, as in ‘no need to sell, it’ll pump much higher.’ This kind of confidence is usually punished by the market.
SHIB and Its Woof at the Derivatives Market!
The volumes on the derivatives market have seen an uptick. The volume has surpassed the $5 billion mark for the first time. Which is an increase of 78X in volume since the 1st of October. The trading on futures looks much bigger in comparison to the spot market.
The trade volumes on the derivatives market hint at the interest of traders on Shib. However, high volumes on the derivatives market also relate to a higher number of leveraged positions. This in turn allows traders to buy more than they actually can. Which gives us a broader picture of the scenario.
Summing up, SHIB is currently recovering from the recent correction. The coin needs to beat the blues, to get going with its long-term targets.