SHIB/USD has suffered a price slump the past handful of days, but what may entice speculators of the Shiba Inu coin is that it continues to correlate to the broad cryptocurrency market.
The past five days of trading for SHIB/USD has seen a reversal lower ensue and short-term support is being contested in early action today. However, Shiba Inu remains a purely speculative cryptocurrency which is pursued by short-term traders who are, to put it bluntly, simply wagering on the SHIB/USD as if they are in a casino. While this is a fine endeavor, it obviously carries a significant amount of risks.
Intriguingly for speculators of SHIB/USD is that the cryptocurrency remains tightly correlated to the results of the broad market. The past few days of trading have seen some of the major cryptocurrencies stumble from their mid-term highs and SHIB/USD has also suffered essentially the same plight. On the 16th of August, SHIB/USD was trading near important highs which touched values seen in late June and mid-June respectively.
It must be remembered that Shiba Inu is a relatively new cryptocurrency which was introduced mostly with the intention of being a speculative pursuit, similar to Dogecoin. On the 20th of July, SHIB/USD, like many other major cryptocurrencies, suffered lows and has since then been able to resuscitate and gain in a significant manner. The lows of late July and highs of mid-August almost doubled the value of SHIB/USD. However, the current value of SHIB/USD is roughly 30% higher compared to its July lows.
The percentage changes in value of SHIB/USD should garner the attention of speculators. If a trader has the desire to wager on Shiba Inu and accept that this carries a significant amount of risk, the upside potential of buying the coin and hoping for anticipated moves upwards if SHIB/USD correlates to bullish sentiment being generated within the broad cryptocurrency market could prove to be worthwhile.
Traders need to understand that the fractional value of SHIB/USD makes the use of leverage a significant factor regarding the volatility of the cryptocurrency when betting on its direction. Traders that can implement entry point execution ratios to buy SHIB/USD on slight reversals lower, use adequate stop loss protection and earmark a realistic target as a take profit goal could actually be making an attractive wager within the cryptocurrency market.
Shiba Inu Coin Short-Term Outlook:
Current Resistance: 0.00000737
Current Support: 0.00000683
High Target: 0.00000785
Low Target: 0.00000625