Like all cryptocurrencies, Shiba Inu (CCC:SHIB-USD) has not been immune to the recent market sell-off. The lazy easy take would be for crypto skeptics to use the current volatility as an opportunity to say “I told you so”. That’s a conversation I know better than to have. Indeed, the recent Shiba Inu sell-off may be just what the altcoin needs to prove it has staying power.
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One of my main concerns about cryptocurrencies in general, and an altcoin like SHIB in particular, is that investors have never experienced what these coins would do in a bear market. The conventional narrative was that cryptocurrencies would move against the market. But that has not been the case. In fact, like all risk assets, cryptocurrencies have been hit even harder than some tech stocks.
For Shiba Inu investors, however, the recent sell-off is a continuation of a pattern that began in late October 2020. That was the last time the SHIB posted a big price increase. Since then, the coin has been in a bearish pattern of lower highs and lower lows.
Taking a look at the message boards shows me that there is a 50/50 split between the bulls and the bears. So what should Shiba Inu investors do now?
Manage expectations Don’t move the goalposts
If you bought a Shiba Inu, I hope you have a game plan complete with buy and sell triggers. The temptation when an investment you believe in takes a nosedive is to change your goals. You think you can drop it some more. You think you can give him one more day, etc.
But most of the time it just doesn’t benefit investors to fight the tape. If the Shiba Inu is what you think it is, you can still sell some now and live to fight another day.
Prior to this recent sell-off, the SHIB army may have been willing to write off the altcoin crash as profit-taking and tax-raising. After all, even the most loyal soldiers want to enjoy their loot from time to time.
However, the recent sell-off is calling that rosy narrative into question and bringing reminders that the Shiba Inu lacks the utility of some other altcoins. And the real problem for some altcoin holders was that unless they jumped on the Shiba Inu bandwagon early, they had a big loss right now.
Here’s Why Clarity Matters
About a month ago, I wrote about Shibariums. It is a tier 2 blockchain that will be owned by Shiba Inu. The benefits of this blockchain include increased transaction speed, a green proof-of-work (PoW) system for authentication, self-managed storage by size on the blockchain, and full governance. Additionally, Shibarium will have a native stablecoin, SHI, to help provide a solution to the high fees SHIB incurs as an ERC-20 token.
Shibarium is supposed to be released sometime in 2022. However, as I mentioned in my previous article, the developers are thinking about the release date. That is, they have not put a date or even a quarter for investors to point. On the one hand, you could say that it is better to under-promise and over-deliver. But there’s a point where that starts to sound like a twist.
As I said then, I have no reason to believe Shibarium won’t release. The SHIB community certainly believes that. I’m just saying now would be a good time for an announcement.
Shiba Inu remains a gamble with an uncertain future
Right now the Shiba Inu is considered a risky asset at a time when the markets are moving towards risky assets. That is not my opinion; it’s just what’s happening. And it just goes to show that, right now, altcoins are not considered a mainstream investment.
Should that matter to you? For me it would be, but with millions wagered on sports betting every day, I guess crypto could be seen as just another gamble. However, we can remember this period as a time when the cryptocurrency bubble burst. Or we could see it as a moment where he proved why investors are so enamored with him to begin with.
There are a variety of outcomes that could happen. That’s not a bet I’d like to take. If so, I urge you to look at your Shiba Inu position size and if you have profit to take, there is nothing wrong with cashing out.
As of the date of publication, Chris Markoch did not have (directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publishing Guidelines.
Chris Markoch is a freelance financial writer who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.
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