Shiba Inu Rally is Stealing Bitcoin’s Spotlight: Analyst

Shiba Inu Rally is Stealing Bitcoin’s Spotlight
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Yerevan (CoinChapter.com) – Shiba Inu coin (SHIB), the self-proclaimed ‘Dogecoin killer,’ is more like a “BULL” dog these days. The new cryptocurrency has overshadowed the meme token with its supersonic price rally in recent sessions. It has even outdone the flagship cryptocurrency Bitcoin (BTC), which is still in a consolidation phase despite strong technical fundamentals.

Fundamentals Behind Bitcoin

Ki-Young Ju, a South Korea-based blockchain analyst and the chief executive of CryptoQuant.com, has repeatedly tweeted about the upcoming Bitcoin rally. In his expert opinion, there are technical fundamentals to back BTC’s bullish claim. As he tweeted back on May 6:

The analyst also refers to the so-called Exchange Whale Ratio. It is an indicator to determine future token behavior based on the relative size of the top 10 inflow transactions to total inflows. If the indicator keeps below 85 percent, BTC will likely go bullish.

Despite the bullish indicators, however, the price of the alpha token is still consolidating. BTC is trading at 55,530 against the USD in the London session Tuesday.

bitcoin consolidating despite bullish predictions Source: BTCUSD on TradingView.com
bitcoin consolidating despite bullish predictions Source: BTCUSD on TradingView.com

Read more: Bitcoin Week Ahead Ep03: Key Inflation Figures in Focus

Some experts believe that the stabilization in BTC value has much to do with the altcoin season, as the traders prefer to lock their assets in smaller cryptocurrencies. Greg Waisman, the co-founder, and COO of the global payment network Mercuryo, voiced his opinion in an exclusive interview with CoinChapter.

Another reason why BTC struggles is that the attention seems to have shifted towards some highly successful altcoins, such as DOGE, which managed to climb to the 4th spot on the list of largest coins by market cap. […]Ethereum is performing excellently as well, hitting a new ATH almost every day.

said Mr. Waisman

Ki-Young Ju agrees, as he thinks minor crypto-coins managed to steal the spotlight in the past trading session.

The most shocking entry on the list above is the new Shiba Inu coin, which seemed to appear out of nowhere on the Chinese crypto-sphere and “unabashedly coopt” the face of Dogecoin, the Shiba Inu dog.

Meanwhile, Shiba Inu…

…phenomenon is a reflection of Dogecoin itself. A coin with “no intrinsic value” stole the show and managed to accumulate real-life investments. The Shiba Inu puppy is just a few days old and has already been listed on 3 major cryptocurrency exchange platforms in China: Binance, Huobi, and OKEx. The latter enlisted SHIB on May 8, shortly followed by the other two platforms.

The token’s website advertises the SHIB as an affordable trading opportunity. The company claims that it can “overshadow Dogecoin,” the fourth-largest cryptocurrency by market cap, stating that their project is an “experiment in decentralized spontaneous community building” that has lately gained wider attention. Investors piled heavily into the SHIB, granting it an 80 percent gain in the Tuesday London session.

Shortly after, however, the price dropped again.

The new token’s price stands at $0.00003010.

Shiba Inu coinc steals spotlight. Source: SHIBUSD on TradingView.com
Shiba Inu coin steals spotlight. Source: SHIBUSD on TradingView.com

Read more: Dogecoin Dives after Elon Musk Calls It A ‘Hustle’ on Saturday Night Live

Given the wild success of Dogecoin, the Shiba Inu coin might be here to stay. However, Mr. Ju believes this frenzy over the highly volatile meme-coins will eventually die down. He suggests they will give way to “smart money”. The investments will pour back into the major cryptos like BTC and ETH.

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