Shiba Inu (SHIB) prices skyrocketed on April 12 following their introduction on Robinhood, a commission-free trading platform located in the United States.
The SHIB price increased by more than 35% to 0.00003, its highest level in nearly two months, before trimming some gains. Nonetheless, SHIB was on track to have its best daily performance since Feb. 6, when it gained about 27%.
Since the pandemic began in March 2020, Robinhood has evolved as a go-to option for regular investors. Last year, the retail brokerage added 10 million funded accounts to its platform, with first-time investors accounting for more than half of the new sign-ups.
Nonetheless, in its fourth-quarter earnings for 2021, it recorded a net loss of $423 million, noting that its major source of revenue (payments for order flow) made $263 million, compared to $267 million in the same quarter the previous year.
Meanwhile, cryptocurrency trading revenues increased by more than 300 percent during the same time period, putting Robinhood on track to launch more crypto-related services in 2022, including a wallet and the addition of more altcoins and meme tokens to its brokerage platform.
The inclusion of SHIB to Robinhood, according to David Gokhstein, founder of Gokhshtein Media, is “a tremendous thing” for the crypto sector, noting that the cryptocurrency might help attract more users to other prominent coins like Bitcoin (BTC) and Ether (ETH).
According to IntoTheBlock data, the events leading up to Shiba Inu’s big intraday rise included a period of strong accumulation.
The analytics tool discovered that the address that has held SHIB for more than a year has boosted their balance in the last 30 days. As a result, these hodlers now own 2.82 percent of the total quantity in circulation.
Shiba Inu, on the other hand, continues to be threatened by its dominant bearish continuation pattern. Since late December 2021, SHIB has been consolidating inside a so-called symmetrical triangle. It established the pattern after dropping nearly 70% from its October 2021 high of $0.00008894.
SHIB should now break below its triangle to resume its bearish trend, according to general technical trading rules. If SHIB falls below the triangle’s lower trendline, the next downside target will be at a length equal to the maximum distance between the pattern’s upper and lower trendlines calculated from the breakout point.
This bearish scenario lowers the projected price for Shiba Inu to less than $0.00001200, a drop of more than 50% from the price on April 12.