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Daink, a crypto market analyst and trader, discloses his Shiba Inu but strategy, projecting an imminent rally to the 2021 high above $0.000088.
The latest commentary comes on the back of an ongoing downturn in the market. Shiba Inu remains one of the most impacted by the prevailing market conditions. With June barely two days away from a close, SHIB has collapsed 32.87% this month. This could mark its worst performing month since May 2022, during the Terra implosion.
SHIB’s Volatility Induces Steeper Drop
Shiba Inu’s bearish condition is due in large part to Bitcoin’s (BTC) persistent selling pressure. However, the firstborn crypto asset is only down 10% this month, showing greater resilience. SHIB has recorded a steeper drop because of its higher volatility, a trait that could be beneficial during an uptrend.
Santiment confirms that Shiba Inu’s volatility has persistently surpassed Bitcoin’s over a one-week timeframe. Data shows that, while Bitcoin (yellow line) has recorded an increase in volatility, its weekly volatility stands at 0.021. Meanwhile, despite a drastic drop in volatility (blue line), SHIB’s weekly volatility rests on 0.025.
This period of reduced volatility for Shiba Inu often comes before a price rally. Daink is looking to leverage this opportunity to ride on the anticipated surge. Notably, this drastic drop in volatility occurred in February, right before the previous SHIB uptrend. With a repeat on the horizon, Daink reveals he has bought a long-term Shiba Inu bag.
$SHIB
Bought a long term bag pic.twitter.com/WLP5vYgs6E
— Daink (@TraderDaink) June 28, 2024
Shiba Inu Investment Strategy
This strategy involves procuring and holding onto SHIB over a long period of time until the targeted price level is reached. The trader’s chart suggests that he expects Shiba Inu to clinch a target above the $0.000088 threshold. This level represents SHIB’s all-time high value, attained in October 2021 during the previous bull run.
Meanwhile, Shiba Inu has now found stability at the $0.000017 support, largely consolidating at this region for five days. With its current price at $0.00001705, SHIB would need to spike 416% to reach the $0.000088 target. Such a rally would turn a $1,000 investment to a whopping $5,161.
Interestingly, IntoTheBlock data indicates that Daink’s long-term investment strategy is the go-to plan for most Shiba Inu investors. Per on-chain data, 1.03 million addresses, representing 76.8% of the total 1.34 million SHIB addresses, have held their tokens for over a year. This figure increased from 1.02 million just 10 days ago.
The impressive investor confidence prevails despite the ongoing market bloodbath. Several market watchers have predicted an imminent surge for Shiba Inu once the correction ends, contributing to the optimism. Last month, analyst Javon Marks projected an upcoming price surge to the $0.000088 territory.