A popular analyst and trader warns that the wider crypto market will be affected if meme coins like Shiba Inu (SHIB) explode in price.
The pseudonymous analyst Altcoin Sherpa tells his 189,300 Twitter followers that if meme coins start rallying, it could result in the market recovery seeing the total crypto market cap surge above $1 trillion come to an end.
“SHIB: Time for meme coins to have a run?
(This might mean cycle is ending soon)”
From his technical analysis charts, it appears Altcoin Sherpa is suggesting that after Shiba Inu goes above the 200-week exponential moving average (EMA) on the daily chart, the meme coin could surge to over $0.0000160, a 29% increase from current levels.
Shiba Inu is trading for $0.0000124 at time of writing.
Regarding Bitcoin (BTC), the analyst says that if the flagship crypto asset follows the 2019 playbook, BTC is unlikely to fall below $19,000 but could rally past the $30,000 resistance level.
In 2019, Bitcoin nearly quadrupled its year-opening price in the first half before losing more than 50% of the gains it had accrued in the second half.
“But if it’s going to be like 2019 then I expect this just to continue to run. Like I don’t expect this to have like any strong pullback all the way down to $19,000 like everyone wants…
We might just continue to see this grinding past $24,000 and then it might stall out around $30,000 and then just keep going higher. That would be the overall 2019 scenario to me.”
Bitcoin is trading for $21,219 at time of writing.
I
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxGenerated Image: Midjourney