He Shiba Inu (CRYPT: SHIB) The cryptocurrency, once a market darling, is now simmering. Investors eyeing price targets from $0.01 to high dollar per tokenThey are in a dilemma since the current price is around one thousandth of a cent.
As the market cap has shrunk from its $41.1 billion at its October 2021 peak to $6.2 billion today, the fundamental question arises: hold on to Shiba Inu with diamond hands Hoping for a miraculous turnaround or releasing this capricious crypto asset into the wild?
Let's put everything on the table. I think it's a great idea to sell Shiba Inu right now, and here's why.
Beyond the Hype: Shiba Inu Basics
It is true that Shiba Inu have been triggered in the past. However, past performance is no guarantee of future results. Sudden price increases are usually followed by equally dramatic drops. If the bulls were on the right path in the first place, the stock chart may rise again over time and perhaps even eclipse that short-lived glory in the end. But bears tend to win in the long run, leaving the former market darling in the dust.
I'm not kidding about the winning downtrend. A winning strategy in our Motley Fool CAPS system is to give negative ratings to dozens or even hundreds of risky, unprofitable small-cap stocks. Three of the five highest-rated players so far have done exactly this, earning player ratings of 99.99 or higher on a platform where the maximum is 100 points. Simply put, betting against risky investments tends to be a winning tactic.
CAPS doesn't track cryptocurrencies (yet, anyway), but Shiba Inu would be a prime candidate for a bearish rejection rating. Cryptocurrency serves no serious purpose other than digital payments, and even then, more robust digital payments networks like Dash (CRYPT: DASH) and Litecoin (CRYPT: LTC) It can serve the same purpose with additional benefits.
For example, Litecoin and Dash have minimal transaction fees and their prices have been more stable than Shiba Inu in recent years. And whenever it is possible to pay with Shiba Inu, it is usually done through a third-party "crypto gateway" service that includes their support along with dozens of other options. Again, it is not difficult to find better payments-oriented cryptocurrencies.
Don't forget that Shiba Inu was originally created as a joke. The technology behind it is quite serious, based on the Ethereum (CRYPT: ETH) Smart contract platform with various supporting tokens that serve special purposes such as governance and mining rewards. But it's really just a social experiment, testing a community-driven spin on cryptocurrency management and leaning even further into the adorable puppy mascot that Dogecoin (CRYPT: DOGE) I ever did it.
The Final Verdict: Shiba Inu Investment Potential
I'm not saying you should hit the "sell" button on Shiba Inu right away and never look back. The community is low-key trying to build a serious business with Shibarium technology that increases speed and reduces costs. If this network can shake off its meme coin status and start gaining interest from developers, Shiba Inu could create some value for coin holders over time.
But I wouldn't bet on it. There are too many Ethereum-compatible coins on the market to let this puppy sneak in and steal the proverbial Thanksgiving turkey. Web3 developers benefit from other speed-focused smart contract systems, such as solarium (CRYPT: SUN) either avalanche (CRYPT: AVAX) - or even good old Ethereum, which is updating its technical architecture in a multi-year process.
Shiba Inu may eventually find its niche. Still, the current outlook suggests a more cautious approach. Betting on a single speculative asset like Shiba Inu carries significant risk, especially compared to more established players in the rapidly evolving cryptocurrency sector. Shiba Inu is not likely to reach that utopian $1 price in the foreseeable future, and even the $0.01 target seems unreasonable.
This silly coin won't go to the moon. So if you built your Shiba Inu at half the current price, which was possible in June 2023 and summer 2022, I highly recommend cashing in those profits and moving on to better long-term ideas.
Should you invest $1000 in Shiba Inu right now?
Before you buy Shiba Inu stock, consider this:
He Varied and Dumb Stock Advisor The analyst team has just identified what they believe are the 10 best stocks for investors to buy now... and Shiba Inu was not one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow success plan, including guidance on how to build a portfolio, regular analyst updates, and two new stock picks each month. He Stock Advisor The service has more than tripled the performance of the S&P 500 since 2002*.
*Stock Advisor returns from December 18, 2023
Anders Bylund has positions in Ethereum and Solana. The Motley Fool has positions and recommends Avalanche, Ethereum and Solana. The Motley Fool has a disclosure policy.
Is it time to sell Shiba Inu? was originally published by The Motley Fool
