Is This Confirmation That the Shiba Inu Saga Is Over?

After just two days of rapid gains, Shiba Inu is again selling off, mirroring the downtrend of other speculative cryptos like Dogecoin.

Double exposure of a businessman and stairs - Business Success Concept

Image source: Getty Images

Shiba Inu has quickly become one of the most popular cryptocurrencies, reaching the top 10 in value earlier this year.

Although its technology is much different from Dogecoin, many of the same investors have bought both, because Shiba Inu is the same type of dog breed on Dogecoin’s logo. And they are largely attributed as two of the most successful meme coins.

Lately, though, after the exceptional rally that Shiba Inu saw in October, it has been on a consistent downtrend. In fact, over the last month, Shiba Inu lost half of its value. That was until earlier this week when it saw a significant 20% gain in price in just two short days.

This jump happened as a result of Shiba Inu being listed on a new exchange, which tends to have that short-term effect on cryptocurrencies. So, this is a reminder that even coins on a significant downtrend can rally at any time. You can never predict what will happen in the short run. However, the quick selloff after that rally also shows that Shiba Inu still has significant downward momentum.

If you compare a Dogecoin chart from May to a Shiba Inu chart in October, the two are almost completely identical. This doesn’t necessarily mean Shiba Inu will continue to follow the same pattern as Dogecoin, but it’s certainly not a bullish signal.

Avoid Shiba Inu and focus on high-quality cryptocurrencies

As was proven this week, even when a highly speculative cryptocurrency like Shiba Inu is on a significant downtrend, there is still the potential for news to make it temporarily rally.

However, although there may still be periodic run-ups in the price of the token, you can’t just buy it hoping for more positive news to come out. That’s not an investing strategy.

Not to worry, though. There are several cryptocurrencies that offer far better long-term potential. There are even crypto stocks you can buy in your TFSA that offer more opportunities for growth.

So, rather than Shiba Inu, here are two high-quality cryptocurrencies with much more long-term potential.

Two of the top cryptocurrencies to buy today

If you’re looking to buy a high-quality cryptocurrency that you can commit to for the long run, it’s crucial that they have a use case.

Not only does this make the investment less speculative, but the more uses a coin or token has, the more investors are going to be holding it to use it, and therefore, over time, as the demand increases, they should only continue to increase in price.

So, rather than Shiba Inu, I’d consider two high-potential cryptocurrencies like UNI and AVAX.

UNI is the governance token of Uniswap, one of the most popular decentralized exchanges on Ethereum’s network. Many are bullish on Ethereum, as it’s already the most actively used blockchain.

So, owning Uniswap’s governance token, which you can then stake and earn a yield on, is a much better option than Shiba Inu. Already UNI is in the top 20 most valuable cryptocurrencies and has a market cap north of US$13 billion.

AVAX is the native cryptocurrency of a high-quality blockchain, Avalanche. Avalanche is a blockchain that’s seeking to dethrone Ethereum as the most actively used network. However, it’s also compatible with Ethereum, so it can grow as part of the Ethereum ecosystem.

At this point, though, Avalanche’s network has better technology than Ethereum’s, which is why it could be an excellent long-term investment. And AVAX is already the 12th most valuable cryptocurrency with a market cap of more than US$42 billion.

So, rather than speculate on Shiba Inu, which looks to be on a significant downtrend, I’d strongly consider investing in high-potential cryptocurrencies or even crypto stocks that offer tremendous opportunities for growth.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Investing

stock research, analyze data
Dividend Stocks

How Much to Invest to Get $500 in Dividends Every Month

TSX dividend stocks such as Enbridge, TD Bank, and Telus, can help you earn $500 in monthly dividend payments.

Read more »

A solar cell panel generates power in a country mountain landscape.
Energy Stocks

Clean Energy Play: Is Brookfield Renewable a Good Stock for a TFSA?

Add this top renewable energy stock to your self-directed TFSA portfolio for significant long-term and tax-free wealth growth.

Read more »

Golden crown on a red velvet background
Dividend Stocks

Dividend Powerhouses: Canadian Stocks to Fuel Your Portfolio

These two top Canadian dividend aristocrats are some of the top stocks on the TSX to buy now and hold…

Read more »

Dial moving from 4G to 5G
Dividend Stocks

This Undervalued Dividend Stock is Worth Buying Right Now

Want an undervalued dividend stock with long-term potential and a juicy yield? Here's an option you may regret not buying…

Read more »

A worker gives a business presentation.
Dividend Stocks

1 Stock I’m Buying Hand Over Fist in July Despite the Market’s Pessimism

This top dividend stock is going through a rough patch, but don't let that count out all the growth we've…

Read more »

financial freedom sign

2 Stocks With Millionaire-Maker Potential

These two top Canadian stocks are among the best on the TSX, and each has the potential to be millionaire-maker…

Read more »

Piggy bank next to a financial report
Stocks for Beginners

Is It Finally the Right Time to Buy Bank Stocks?

Canadian bank stocks are some of the most secure investments out there, but of them all, this bank stock is…

Read more »

clock time

3 Blue-Chip Stocks Every Canadian Should Own

Want some reliable blue-chip Canadian stocks to buy and hold for the next 10 years? These three stocks are worth…

Read more »