Shiba Inu (SHIB) prices soared on April 12 upon its debut on Robinhood, a U.S.-based commission-free trading platform.
SHIB price climbed by more than 35% to 0.00003, its highest level in almost two months, before paring some gains. Nonetheless, SHIB was still on track to log its best daily performance since Feb. 6 when it rallied by nearly 27%.
Strong crypto revenues precede SHIB’s listing
Robinhood emerged as a go-to avenue for everyday investors since the pandemic’s start in March 2020. Last year, the retail brokerage added 10 million funded accounts to its platform, with more than half of the new sign-ups coming from first-time investors.
Still, it reported a net loss of $423 million in its fourth-quarter earnings of 2021, noting that its main source of revenue (payments for order flow) made $263 million compared to $267 million in the same quarter of the previous year.
Meanwhile, revenues from cryptocurrency trading surged over 300% in the same period, putting Robinhood on course to introduce more crypto-related services in 2022, including a wallet and the addition of more altcoins and meme tokens to its brokerage platform.
David Gokhstein, the founder of Gokhshtein Media, said the addition of SHIB to Robinhood is “a great thing” for the crypto space, noting that the cryptocurrency could help drive more users to other top coins like Bitcoin (BTC) and Ether (ETH).
With the $SHIB listing on Robinhood, I’m watching the other meme tokens To see if they move.
— David Gokhshtein (@davidgokhshtein) April 12, 2022
What’s next for Shiba Inu?
The events that led up to Shiba Inu’s massive intraday rally also include a period of strong accumulation, data from IntoTheBlock shows.
The analytics platform noted the address holding SHIB for more than a year increased their balance in the past 30 days. As a result, these “hodlers” now has control over 2.82% of the net SHIB supply in circulation.
Diamond Hands win$SHIB Hodlers remain unfazed and accumulated during the past weeks and it’s paying off with today’s Robinhood announcement
— IntoTheBlock (@intotheblock) April 12, 2022
From the technical perspective, however, Shiba Inu continues to face threats from its prevailing bearish continuation pattern.
Related: Robinhood rolls out wallets to 2M waitlisted users, plans to integrate Lightning
Notably, SHIB has been consolidating inside a so-called symmetrical triangle since late December 2021. It formed the pattern after falling by nearly 70% decline from its October 2021 high of $0.00008894.
As a general technical trading rule, SHIB should now break below its triangle to resume its bearish trend.
If SHIB falls below the triangle’s lower trendline, its next downside target comes to be at length equal to the maximum distance between the pattern’s upper and lower trendline, when measured from the breakout point.
This bearish scenario puts the target for Shiba Inu below $0.00001200, down over 50% from April 12’s price.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.