Shiba Inu (SHIB), the popular memecoin, is experiencing a recent rally that has caught the attention of many traders. However, a well-known analyst suggests that this surge could be a setup to trap bullish investors hoping for a reversal in the coin’s downward trend.
Cheds, a pseudonymous analyst with a significant following on Twitter, warns his 311,700 followers that Shiba Inu’s rally is occurring within a larger macro downtrend. He believes that this upward movement will likely trap SHIB bulls who are expecting the coin to reverse its trend and initiate a separate bull run. Cheds suggests that a short position may be appropriate in this situation.
The analyst further explains that there are signs of exhaustion among the bulls, potentially indicating a blow-off top on the four-hour chart. Cheds maintains his bearish stance unless SHIB manages to rally above the $0.00001075 mark. Currently, Shiba Inu has been on a strong upward trajectory since hitting its low for 2023 at around $0.0000054 in June. As of now, SHIB is valued at 0.00001013, showing a 14% increase in the last 24 hours.
Cheds also shares his insights on Bitcoin (BTC), stating that the leading cryptocurrency may have already established a local bottom after dropping to approximately $28,600. He advises BTC enthusiasts to take note of the $28,612 low on August 1st, which should satisfy the initial call for a mean reversion. Moving forward, this price zone gains significance and should be considered a throwback reference point.
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In late July, Cheds accurately projected that Bitcoin would decline to the $28,500 range before concluding its corrective phase. Additionally, he anticipated a slow grind-up for BTC after reaching his downside target. Currently, Bitcoin is valued at $29,089.
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In conclusion, Shiba Inu’s recent rally may not be as promising as it initially seems, as there are indications that it could be a setup to trap bullish investors. Cheds, a respected analyst, warns of the coin’s macro downtrend and advises caution when considering long positions. Similarly, Bitcoin has shown signs of a potential local bottom, and Cheds predicts a slow grind-up for the leading cryptocurrency. It is essential for investors to stay informed and make well-researched decisions in the highly volatile world of cryptocurrencies.
