Shiba Inu SHIB/USD was plunging over 20% at one point Tuesday afternoon, in tandem with the broader crypto sector, which is seeing high levels of volatility in Bitcoin BTC/USD and Ethereum ETH/USD.

Dogecoin DOGE/USD sank almost 30% before bouncing up off the 200-day simple moving average (SMA).

Between 9 p.m. and midnight on Monday, Bitcoin slid 5%. Bulls came in and bought the dip on Tuesday morning, causing the apex crypto to surge 7.5% before massive selling pressure entered after noon, dropping Bitcoin down almost 15% from Monday’s closing price.

Bitcoin then bounced up off a solid support level near $17,580, which Benzinga pointed out earlier on Tuesday. The rebound caused Shiba Inu to jump up from the $0.00000930 low-of-day.

Shiba Inu’s plummet caused the crypto to break down from a descending triangle pattern on the daily chart, which is the most likely scenario when that formation appears.

The “Dogecoin Killer” developed the pattern just under the 200-day simple moving average beginning Oct. 29, which indicated that bullish traders were struggling to turn the sentiment in the crypto.

The 200-day SMA is an important bellwether. Technical traders and investors consider a stock trading above the level on the daily chart to be in a bull cycle, whereas a stock trading under the 200-day SMA is considered to be in a bear cycle.

The 50-day SMA also plays an important role in technical analysis, especially when paired with the 200-day. When the 50-day SMA crosses below the 200-day SMA, a death cross occurs. When the 50-day SMA crosses above the 200-day, a bullish golden cross takes place.

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The Shiba Inu Chart: Shiba Inu faced a hard rejection from the 200-day SMA multiple times, fell back into the descending triangle pattern and broke down bearishly. The plummet caused the crypto to hit the Oct. 13 low-of-day, which acted as support and created a bullish double bottom pattern.

• After creating the double bottom pattern, bulls came in and bought the dip, causing Shiba Inu to surge over 8% up from the low-of-day.
• If the crypto can close Tuesday’s 24-hour trading session with a substantial lower wick, Shiba Inu will print a hammer candlestick, which could indicate a further bounce is in the cards for Wednesday.
• If Shiba Inu closes the trading session near the low-of-day, the crypto will print a bearish Marubozu candlestick, which could indicate lower prices are in the cards. Eventually the crypto will need to enter into a sideways consolidation pattern on decreasing volume to digest Tuesday’s high levels of volatility.
• Shiba Inu’s plunge during Tuesday’s session occurred on higher-than-average volume, which is a potential warning sign for the bulls. As of Tuesday afternoon, Shiba Inu’s volume on Coinbase COIN was measuring in at about 6.2 trillion compared to the 10-day average of 4.33 trillion.
• Shiba Inu has resistance above at $0.00001081 and $0.00001178 and support below at $0.00000975 and $0.00000924.

See Also: What In The World Is Going On With Bitcoin-Related Stock MicroStrategy (MSTR)

Photo via Shutterstock. 

Dogecoin started as a joke but ended up attracting billions of US dollars and the interest of Elon Musk himself. The cryptocurrency with the Shiba Inu dog as its logo has become an inspiration for many other crypto projects. The most recent example is Cliff, although it hasn’t been designed as a purposeful parody. On the contrary, Cliff, which also has a dog as its symbol, is seeking to help investors secure sizable returns by implementing a deflationary model.

What Is Cliff and How Does It Work?

Cliff is the first token with a true burn function that can directly and instantly boost the price per coin as a result of burning its circulating supply. The burning mechanism makes sure that Cliff keeps eliminating the excess liquidity on a regular basis. Every time it does so, the event pushes the price of each token up by a certain percentage. Besides this, the token’s value also increases as Cliff has exposure to yield-bearing assets with the goal to provide value to token holders.

Thus, Cliff is a token seeking to act as a hedge fund and grow continually thanks to two main mechanisms: burning a percentage of the circulating supply and investing in yield-bearing assets.

Here is how the burn function works:

• Every trade on Uniswap or other DEX comes with a liquidity fee. Currently, the tax is set at 5% for buys, and 8% for sells but it’s subject to change based on the market conditions. After a certain threshold, the smart contract releases fees accrued and injects it into the liquidity (Initial LP tokens have been burned forever).
• When the burn function is triggered (it can occur manually when the team decides or automatically according to the schedule), the contract unpegs a percentage of the circulating supply and sends it to the burn address. Basically, the process is similar to stock buybacks, in which companies purchase their own stock on secondary markets to reduce the circulating share supply available to the public.
• As a result, each token instantly increases in value after the burn.

When it comes to investing, Cliff is getting exposure to various assets that may grow in value over time. Besides the liquidity pool tax, every trade comes with a 6% tax on buys, and 7% on sells which is used for marketing campaigns as well as yield-generating investments. As of today, Cliff is invested in stablecoins used for staking, LAND assets, and other non-fungible tokens (NFTs). Eventually, the generated wealth will be distributed back to the ecosystem members.

Cliff Features

Cliff token relies on a hyper-deflationary model to encourage a never-ending bullish trend. Here are the token’s main features that you should know about:

• Predetermined automatic true burns – one of its unique features is the code that is programmed to unpeg a small percentage of tokens from the pool and burn it on a regular basis, creating a higher price floor over time.
• Manual burns when liquidity is oversaturated – the manual burn is used by the Cliff team to unpeg the excess liquidity, thus pushing the token price higher immediately after the burn.
• Stable liquidity pool – unlike other liquidity pools, Cliff holders are not required to stake their tokens. Instead, every trade incurs a tax that goes to the liquidity pool address to make sure Cliff becomes less volatile over time.
• Anti whale – During the launch phase, the maximum amount a wallet could hold was .1% of the total supply, ensuring a well-distributed supply across the holders.
• Marketing incentives – a marketing tax is applicable on each buy and sell to ensure the team has enough funds for the marketing campaigns as well as to invest and donate to charities.
• Security – the security of the Cliff token is based on the Ethereum architecture itself. On top of that, the smart contract has been audited by CERTIK, which is one of the most recognized platforms monitoring and auditing blockchain and decentralized finance (DeFi) projects. The code is programmed so that the initial burned liquidity can never be pulled, while any new liquidity tokens generated will go straight to a dead address.

Cliff as a Gateway to RED

The Cliff community has the opportunity to get exposure to another great token that will be added to the ecosystem soon. Known as RED, it will act as a governance and yield-bearing asset.

RED will be a valuable asset for Cliff investors, and the only way to accrue it is by staking Cliff. RED holders will be able to submit ideas and vote on investments proposed by the team. RED will also be the token to accrue yield from the invested assets.

Thus, the ecosystem will be fueled by two tokens seeking to provide real value.

 

Image: Pixabay