Meme Coin

What is ShibaSwap and how does it work?

ShibaSwap is a decentralized exchange platform launched to expand the utility and capabilities of the SHIB token ecosystem.

ShibaSwap is a decentralized finance (DeFi) platform featuring a decentralized exchange (DEX) and passive income-generating services like staking, liquidity pools and yield farming in its ecosystem.

Launched in July 2021, ShibaSwap is a fork of SushiSwap, a popular DEX that is itself a fork of Uniswap (UNI), the world’s leading DEX by volume. But unlike its rivals, ShibaSwap’s core purpose has been mostly boosting the utility of Shiba Inu (SHIB) tokens.

What are Shiba Inu tokens?

ShibaSwap uses three primary tokens: SHIB, Doge Killer (LEASH) and Bone (BONE).

Shiba Inu (SHIB)

SHIB is a Dogecoin-inspired memecoin created in August 2020 by the pseudonymous “Ryoshi.”

During its initial coin offering, the founder(s) distributed one quadrillion SHIB, with half allocated to Ethereum co-founder Vitalik Buterin. Later, Buterin donated 50 trillion SHIB to an Indian COVID-19 relief fund while sending the rest of the 450 trillion tokens to a dead wallet.

*SHIB/USD weekly price chart. Source: TradingView*

Meanwhile, the remaining 500 trillion SHIB were locked in Uniswap and the owners discarded the private keys.

Doge Killer (LEASH)

As the name suggests, Doge Killer (LEASH) arrived as a part of SHIB’s effort to knock Dogecoin (DOGE) off its pedestal as the top memecoin by market capitalization. In its earlier days, the token saw a failed 1:1000 peg to the price of DOGE.

*LEASH/USD weekly price chart. Source: TradingView*

LEASH functions as an ERC-20 token with a fixed supply of 107,647 tokens.

Bone (BONE)

Bone (BONE) serves as a governance token within the ShibaSwap ecosystem. In other words, holding BONE enables users to propose and vote on changes to the ShibaSwap protocol through the Shiba Inu Doggy DAO.

*BONE/USD weekly price chart. Source: TradingView*

BONE’s maximum supply is 250 million coins.

How does ShibaSwap work?

ShibaSwap enables users to trade supported ERC-20 tokens directly with one another. The DEX’s most liquid tokens are Shiba Inu ecosystem coins, with data showing that BONE and LEASH have the highest trading volumes and order book depths.

Staking (BURY)

Owners of SHIB, LEASH and BONE can stake or BURY their coins into ShibaSwap pools for a specific timeframe to earn pre-determined annual percentage yields (APY). These yields get paid in the wrapped version of the staked tokens. For instance, staking 1 LEASH yields users 1 xLEASH.

*ShibaSwap BURY (staking) APY. Source: Official Website*

The pools distribute rewards weekly, but users can claim one-third of the amount. The rest of the staked capital gets vested for six months.

Liquidity Pools (DIG)

ShibaSwap grants users trading fee rewards (0.3% per trade) proportional to the liquidity they provide to its coin pairs. The rewards are handed out as Shiba Swap Liquidity Provider (SSLP) tokens are redeemable for BONE tokens whenever the liquidity provider wants.

Yield Farms (WOOF)

SSLP holders can deposit these tokens to ShibaSwap’s yield farm pools to earn BONE rewards. This reward mechanism is similar to BURY, where users redeem one-third of the rewards instantly but need to lock the rest for six months.

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Some ShibaSwap yield farming pools grant rewards directly in Ether (ETH), Wrapped Bitcoin (WBTC), Dai (DAI), Tether (USDT), and USD Coin (USDC), according to the DEX’s documentation.

Burn Portal

ShibaSwap allows users to voluntarily burn their SHIB holdings, i.e., sending the tokens to a dead address. In return, the platform rewards the users with Ryoshi Token (RYOSHI), an ERC-20 token explicitly created as a burn reward.

NFTs

ShibaSwap also enables the minting, customization and trading of native nonfungible tokens (NFTs) called “Shiboshis.” These 10,000 digital collectibles of the Shiba Inu mascot cartoons will likely be a part of the gaming project called the Shiboshi Game.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Dogecoin trader explains why shorting DOGE now makes sense

Independent market analyst GCR will short Dogecoin even more if Elon Musk goes ahead with his plans to add DOGE payments to Twitter.

Dogecoin (DOGE) has surged nearly 100% quarter-to-date (QTD) on hopes that Elon Musk would integrate the token onto the Twitter platform. However, DOGE’s potential to continue its uptrend in the coming weeks is low, one popular market analyst argues.

Short Dogecoin hard?

Independent, pseudonymous market analyst GCR said he is moderately short on DOGE based on its price’s recent reaction to a Musk tweet. Notably, DOGE formed a local top at $0.158 on Nov. 1. The same day, Musk shared a picture of his pet Shiba Inu wearing a t-shirt with the Twitter logo.

pic.twitter.com/eaIYaDRBnu

— Elon Musk (@elonmusk) November 1, 2022

GCR argues that the Musk effect is wearing off when it comes to Dogecoin’s potential integration into Twitter, meaning that most of the gains are already priced in. Therefore, if the actual integration happens, it will likely become a sell-the-news event.

dog stock only has 2 bullets

bullet 1 – musk tweeting/teasing about integration; already fired

bullet 2 – official integration into twitter; hasn't shot, but would be sell the news

i'm moderate short on doggo, but leaving room open to short harder if they fire 2nd bullet

— GCR (@GCRClassic) November 3, 2022

Overbought correction begins

Meanwhile, Dogecoin continued its correction move on Nov. 4, three days after topping out at $0.158.

DOGE’s price dropped to as low as $0.115 on Nov. 4, in part due to rumors of Twitter pausing its crypto wallet development project. That brought the token’s net percentage correction from the Nov. 1 local top to nearly 27%.

In addition, the downside move surfaced due to its extremely overbought conditions with the highest relative strength index (RSI) since April 2021.

*DOGE/USD three-day price chart. Source; TradingView*

The correction has prompted Dogecoin price to retest its December 2021-May 2022 support (defined by the $0.108-$0.124 range, the red bar in the chart above) for a potential pullback. The coin may reach $0.185, a level coinciding with its 0.236 Fib line, if the recovery occurs.

Conversely, a break below the $0.108-$0.124 range could have DOGE drop to $0.055 as its primary downside target, down 55% from current price levels.

DOGE on-chain data

Furthermore, Dogecoin’s on-chain data reveals a consistent drop in key metrics entering November, which could add more sell-pressure.

For instance, DOGE’s Twitter-led price rally coincided with a sharp rise in whale transaction count (worth over $100,000), suggesting that they supported the upside move. But after Nov. 1, fewer whales have interacted with the Dogecoin network.

*Dogecoin whale transaction count. Source: Santiment*

Meanwhile, the Dogecoin supply distribution across addresses holding between 1,000 and 10 million DOGE tokens has fallen alongside the price. Conversely, the supply controlled by addresses holding more than 10 million DOGE tokens has increased modestly.

*Dogecoin supply distribution. Source: Santiment*

In addition, the addresses holding below 100 DOGE have been increasing, hinting that retail investors have been offsetting whales’ selling pressure to a certain degree.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Shiba Inu price drops to record low vs Dogecoin — Will history repeat with a 150% rally?

SHIB price is still in the danger zone against the U.S. dollar, despite not being as “overbought” as DOGE.

Shiba Inu (SHIB) price can rise by nearly 150% versus its top meme-coin rival, Dogecoin (DOGE), in the coming months, based on a technical fractal.

SHIB hits record low against DOGE

The bullish setup appears as the SHIB/DOGE pair rebounded slightly after dropping to 0.0000841 — its lowest level ever — on Nov. 1. The price level coincided with a descending trendline that has served as strong support for the pair since November 2021.

For instance, Shiba Inu’s previous drop to the said trendline occurred in May 2022, which preceded a 100% recovery rally in the next three months. Similarly, in January 2022, the SHIB/DOGE pair rebounded by more than 50% in less than a month.

Interestingly, all the SHIB/DOGE’s rebound moves reached the 0.0002186-0.0002536 range as their primary upside targets. This area coincides with the pair’s 0.786-1 Fib line range, derived from the Fibonacci retracement graph drawn from the 0.0002536 swing high to the 0.0000899 swing low, as shown in the chart below.

*SHIB/DOGE daily price chart. Source: TradingView*

Therefore, SHIB could once again see a sharp bullish reversal versus DOGE if history repeats, with the upside target in the 0.0002186-0.0002536 range. In other words, at least a 150% price rally by Q1 2023.

In addition, the pair’s daily relative strength index (RSI) signals extreme oversold conditions after dropping to its lowest levels in history, suggesting that a rebound is likely in the near future.

SHIB price risks more losses in USD pair

More cues about an imminent SHIB/DOGE pair rally come from these memecoins’ individual performances versus the United States dollar.

Notably, Dogecoin price rallied by more than 100% versus the dollar in October as traders assessed its potential to become an integral part of Twitter after Elon Musk’s takeover of the social media giant.

This pushed DOGE’s daily RSI over 95 in late October, the most overbought since April 2021. The coin remains technically overbought as of Nov. 3, hinting at a potential price correction in the coming days.

In other words, Dogecoin could drop toward $0.055, or 60% from current price levels, by the end of 2022, as previously reported.

On the other hand, Shiba Inu closed October with a 10.5% profit, and as of Nov. 3, its RSI is in the neutral 30-70 zone, suggesting lower sell-side pressure compared to DOGE.

Nevertheless, the SHIB/USDT pair still risks a 10%-15% short-term price correction to $0.00001088 based on its recent fluctuations inside an ascending triangle range, as shown below.

*SHIB/USDT three-day price chart. Source: TradingView*

Meanwhile, a break below $0.00001088 risks triggering an ascending triangle breakdown. Such breakdowns during a downtrend typically send the price lower by as much as the pattern’s maximum height.

$SHIB pic.twitter.com/BL1tIdlTCm

— il Capo Of Crypto (@CryptoCapo_) November 1, 2022

Therefore, Shiba Inu’s price is in danger of crashing to $0.00000682 should a decisive breakdown occur, a 45% correction by Q1.

Shiba Inu eyes 50% rally as SHIB price enters ‘cup-and-handle’ breakout mode

The Shiba Inu breakout appears almost ten days after SHIB’s addition to Binance Card.

Shiba Inu (SHIB) broke out of its prevailing “cup-and-handle” pattern on Aug. 14, raising its prospects of securing additional gains in the coming weeks.

Shiba Inu could soar 50%

A cup-and-handle appears when the price falls and rises in a U-shaped trajectory in the first stage, followed by a swift move sideways or downward in the second. Notably, the price trend develops under a common resistance level.

Typically, cup-and-handle patterns resolve after the price breaks above the resistance level; SHIB did the same on Aug. 14 after rising 27% to $0.000016, as shown below.

*SHIB/USD daily price chart. Source: TradingView*

Per the rule of technical analysis, a cup-and-handle breakout target is determined by measuring the distance between the pattern’s lowest point and resistance line and adding it to the breakout point. As a result, SHIB could head toward $0.00002253.

In other words, a 50% price rally by September.

A nonsense rally, nonetheless?

Fundamentally, Shiba Inu’s 27% intraday price rally on Aug. 14 had no visible catalysts except a metric showing that SHIB’s burn rate surged by 825% in a day. But the amount of burned SHIB is worth only over $4,500.

*Shiba Inu burn rate. Source: Shibburn.com*

On the whole, however, the Shiba Inu network has burned over $6.36 million worth of SHIB tokens in its lifetime.

In addition, the Shiba Inu rally came almost ten days after Binance’s announcement to add SHIB support on its payment cards issued in Europe. In doing so, the crypto exchange raised SHIB’s potential to find new users in the emerging European cryptocurrency space.

We are pleased to announce that @binance has added SHIB to the list of supported tokens for the Binance Card issued in Europe.

You can now pay with SHIB at 60+ million merchants worldwide. Furthermore, get up to 8% cashback and zero annual or FX fees!https://t.co/0Xj7IXPyt0 pic.twitter.com/FqINtnHFWx

— Shib (@Shibtoken) August 5, 2022

Weak fundamentals could offset SHIB’s technically bullish bias, however, given tha cup-and-handle setups have only a 61% success rate in meeting their profit targets, according to veteran analyst Tom Bulkowski.

Therefore, a failed cup-and-handle breakout—also on a pullback from the 200-day exponential moving average (200-day EMA; the blue wave in the chart below) near $0.00001755—could have SHIB eye an initial correction toward $0.00001306, down 20% from today’s price.

Shiba Inu’s cup-and-handle setup could fizzle because of the token’s overbought daily relative strength index (RSI). Notably, the RSI has crossed above 70, which typically results in a period of sideways consolidation or correction.