A seasoned cryptocurrency analyst who profited from Shiba Inu’s meteoric 2021 rally has issued a stark warning to current holders. Market expert Zack Humphries challenges investors to stop treating SHIB as a guaranteed recovery play and start managing it like any other high-risk cryptocurrency position.
The warning comes in response to recent optimistic statements from Shiba Inu’s marketing lead, Lucie, who painted a rosy picture of the meme coin’s prospects. While Humphries acknowledges the positive sentiment, he criticizes the lack of balanced analysis that fails to address significant risks and structural challenges facing the token.
Reality Behind the Optimism
Humphries maintains that Shiba Inu remains a substantial cryptocurrency asset. The token holds a market capitalization of $4 billion and ranks approximately 25th among global digital assets. He expects SHIB will eventually experience some form of price recovery.
However, he strongly objects to investors using bullish social media posts as justification for continued heavy investment. The analyst emphasizes that relying on reassuring messages from team members creates a dangerous mindset. Investors who continuously pour money into SHIB based solely on insider optimism are making a critical error.
The core issue centers on investor behavior rather than the token’s legitimacy. Humphries points out that treating promotional content as investment advice leads to poor portfolio management. Holders must distinguish between project enthusiasm and sound financial strategy.
Altcoin Market Struggles and Ethereum Dependence
The broader altcoin market has faced severe headwinds since the 2021 peak. Humphries describes the environment as exceptionally difficult for alternative cryptocurrencies. SHIB faces a particular vulnerability tied directly to Ethereum’s performance.
The analyst explains that Shiba Inu struggles significantly when Ethereum fails to lead the market. The token’s price action depends heavily on ETH momentum. This dependency creates problems because Ethereum has underperformed Bitcoin for an extended period.
Source: https://coinpaper.com/14298/shiba-inu-price-recovery-uncertain-as-veteran-analyst-warns-against-blind-optimism
