A closely watched analyst says the latest Shiba Inu (SHIB) rally could be a setup to trap bulls looking to lung the memecoin.
Pseudonymous analyst Cheds tells are 311,700 Twitter followers that Shiba Inu is currently witnessing a wave within a macro downtrend.
According to the analyst, the rally is likely to trap SHIB bulls who expect the top memecoin to reverse its trend and unleash an isolated bull run.
“SHIB strong bounce in strong downtrend. Maybe we’ll make a short film here soon.’
Cheds say that bulls are starting to show signs of exhaustion after possibly printing a blowoff top on the four-hour chart. He also says his bearish stance will become invalid if SHIB rises above $0.00001075.
Shiba Inu is currently in the middle of a strong upside after pushing the 2023 low of around $0.0000054 in June. At the time of writing, Dogecoin’s competitor (DOGE) is worth 0.00001013, up more than 14% in the past 24 hours.
Looking at Bitcoin (BTC), Cheds says the crypto king may have already pressed a local bottom after dropping to around $28,600.
“BTC students should note that (the August 1 low) of $28,612 should be enough to meet the initial call for a mean reversion.
In the future, consider it a legacy that now adds interest to that price zone.
Late last month, Cheds predicted that Bitcoin would drop to $28,500 before the correction period ended. The analyst also said that BTC is likely to slowly deteriorate after reaching its downside target.
At the time of writing, Bitcoin is worth $29,089.
Don’t Miss Out – Subscribe to receive email alerts delivered straight to your inbox
Check price action
follow us on Twitter, Facebook And Telegram
Surf the Daily Hodl mix
Image generated: Midway through the journey