Shiba Inu, are collapse warnings exaggerated concerns?..."Holders increased and exchange supply decreased"

▲ Shiba Inu (SHIB)/AI generated image

Market commentator LuckSide Crypto has refuted recent warnings targeting new investors in Shiba Inu (SHIB). He argued that concerns surrounding Shiba Inu do not adequately reflect the project's improved fundamentals and market resilience.

TheCryptoBasic reported on May 11 (local time) that LuckSide refuted warning reports directed at new investors during a discussion about recent Shiba Inu price movements. He noted that the altcoin market had recently risen to its highest level since February 3, signaling a recovery in investor confidence across the broader cryptocurrency market.

LuckSide explained that Shiba Inu has steadily increased in value over recent weeks, rising over 4% as of his commentary. He believes that if the current bullish trend continues, Shiba Inu could potentially drop a zero from its price. This suggests that Shiba Inu is not just a speculative memecoin but could show a significant bullish reversal during a market rebound.

This debate originated from reports warning about the risks of memecoins, including Shiba Inu. These reports cited Shiba Inu's speculative nature, high volatility, and regulatory concerns surrounding meme-based cryptocurrencies. In response, LuckSide argued that simplifying Shiba Inu as a digital collectible outside of securities law is an overly narrow interpretation of regulatory discussions.

Based on recent guidance from the U.S. Securities and Exchange Commission (SEC), LuckSide asserted that an cryptocurrency is not automatically excluded from securities law simply because it is considered a digital commodity. TheCryptoBasic previously reported that the SEC mentioned Shiba Inu, Cardano, and XRP as examples of digital commodities.

He also rejected the criticism that only Shiba Inu investors are driven by unrealistic price expectations. While target prices like $0.01 or $1 are indeed discussed, LuckSide explained that speculative targets are widespread across the entire cryptocurrency market. He cited the example of XRP supporters also having expectations for much higher future values.

LuckSide emphasized that the speculative nature is not a problem unique to specific assets, as the cryptocurrency market is still in its early stages. He assessed that the project has shown stronger stability since February, citing the increasing number of Shiba Inu holders, decreasing supply on exchanges, and improved long-term market structure.

However, LuckSide did not consider Shiba Inu to be immune from overall market risks. He warned that Bitcoin still shows a bearish technical structure, and the upcoming Consumer Price Index (CPI) report this week and the markup process for the U.S. cryptocurrency market structure bill could increase overall volatility in the cryptocurrency market.

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