Despite a challenging market downturn, crypto analyst Daink has reignited interest in Shiba Inu (SHIB) with a buy strategy targeting a potential price surge. This bold move comes amidst a period of significant losses for SHIB, reflecting the broader market volatility.
The cryptocurrency market has witnessed a sustained decline recently, and SHIB hasn’t been immune. At the time of writing, SHIB is down a staggering 32.7% in June, trading at a mere $0.0000172. This marks its worst performance since May 2022, when it plummeted 42.1% due to the Terra ecosystem collapse. SHIB’s inherent volatility as a memecoin exposes it to amplified price swings during downturns, as seen in these recent events. However, this very volatility can also fuel significant gains during uptrends.
Volatility: A Double-Edged Sword
Data from Santiment paints a clear picture: SHIB’s one-week volatility consistently surpasses Bitcoin’s. This translates to more pronounced price fluctuations for SHIB. In contrast, Bitcoin has only dropped about 10% in the past month, demonstrating greater stability compared to the memecoin.
Intriguingly, historical data suggests that periods of reduced volatility for SHIB, like the one currently observed, often precede price rallies. This is the premise behind Daink’s strategy, which views this lull as a potential buying opportunity before an upcoming surge.
Daink’s Long-Term Play and Investor Confidence
Daink’s strategy revolves around acquiring and holding SHIB for an extended period until a specific price target is reached. His analysis projects a price climb that surpasses SHIB’s all-time high of $0.000088, set in October 2021. While SHIB currently sits at an 80.65% decline from that peak, Daink isn’t alone in his bullish outlook. Several prominent analysts have echoed similar predictions, with some setting targets as high as $0.0001.
Going even further, Casey Stubbs, a well-respected crypto CEO, has expressed his belief that SHIB could reach a market cap of a staggering $1 trillion. This would translate to an astounding price of $0.016 based on its current circulating supply. While these are undeniably ambitious targets, they reflect the unwavering confidence held by many analysts in SHIB’s future potential.
Daink’s long-term approach seems to resonate with a significant portion of the SHIB investor base. According to IntoTheBlock data, a remarkable 76.8% of SHIB addresses (over 1.03 million investors) have held their tokens for over a year. This figure’s steady growth underscores the enduring faith many investors have in SHIB’s potential for long-term growth, even amidst the current market correction.
Uncertainty in the Short Term, Hope for the Long Haul
While the near future for SHIB remains shrouded in some uncertainty due to the broader market conditions, Daink’s buy strategy and the prevailing investor confidence suggest a potential for significant growth in the long run. Whether SHIB can truly return to its former glory or reach the lofty heights predicted by some analysts remains to be seen. However, one thing is certain: the memecoin continues to captivate the crypto community with its potential for explosive gains.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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