Shiba Inu (SHIB) could be in for some rough times ahead, says Mike McGlone, Bloomberg Intelligence senior commodity strategist.
In the latest edition of the Bloomberg Crypto Outlook, McGlone refers to the popular memecoin as a “Dogecoin wannabe” and “an example of excesses among 13,000 cryptos.”
SHIB made headlines in recent months due to jaw-dropping gains. The 11th-ranked crypto asset by market cap is trading at $0.000057 at time of writing, up a staggering 74,142,662.9% in the past year. However, SHIB has dropped 19.5% in the past month.
According to McGlone, Shiba Inu’s climb to a $40 billion market capitalization puts the coin at similar risk as Dogecoin (DOGE) in Q2 of this year, when it collapsed from $0.74 in May to a low of $0.16 in June.
McGlone predicts gravity is “likely to overcome Shiba Inu” and says the memecoin faces reversion worthy of its parabolic ascent.
“When the Shiba Inu game is up, the problem we see is that many assets could be prone to risk-off sentiment.”
Looking at Ethereum, McGlone says the second-largest crypto asset appears healthy and poised for more rallies.
“Demand is increasing, supply is declining and Ethereum’s position at the epicenter of the digitization of finance and money is a foundation for further price appreciation.
The number two crypto – the denominator for NFTs (non-fungible tokens) and top platform for tokenization – is well on its way to becoming the collateral of the internet, akin to Bitcoin’s trajectory to be the global digital reserve asset.”
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