Okay folks, so market's turning very explosive. all of a sudden. Dow up, S P, up, Nasdaq up over two percent. If you look at the S P, you're testing a breakout over what was a previous mini bull trap.

You look at Growth Tech. Many of our favorite companies saw inflows over the last couple of days. Today was a very good taste of how Growth Tech tends to trade. They're the biggest to get beat down during scary conditions, and they're the fastest to go up during opportune conditions.

High beta aka high volatility goes in both ways, right? Which is why I'm such a big proponent of having a wish list of your favorite stocks to dip by during periods of time where they get massively undervalued and then making sure to sell them out when they get massively overvalued again. Now, we certainly have a long way to go in terms of the Growth Tech sector. Don't get me wrong, and we're definitely not out of the woods yet, far from it. We may be out of the Kathy woods, but we're not out of the woods in the short run.

We'll see where we are tomorrow. In terms of the Cpi report that's coming out is inflationary pressure picking up and has the market already factored that in or not, we'll see. But anyways, in today's video, I actually want to talk to you about the sheep, why it's running, what you need to know about in my projections moving forward. I think you're going to be very, very interested to hear what I have to say about this.

So in the last week of trading, The Holy Sheep is up about 58, which has outpaced Bitcoin by about 3x as well as Ethereum by about the same amount when we covered cheap before the big Crypto winter and really everything winter. Well, one of the issues that we did point out with Sheba is that the typical holding time was very, very low, which meant that a lot of people aren't holding with conviction and are rather trading the momentum. Obviously, that's because a lot of the buyers were new, but still, you had that dynamic where if a lot of buyers are new, they haven't had much testing unless it's very, very difficult to predict what they're going to do if things start going south. However, now Sheep's typical holding time is 77 days.

compare that to Ethereum at 76 days and Bitcoin sitting a bit higher at 95 days. And all of a sudden it's like wow, Things have changed a lot from when you had a typical holding time at just 11 days nowadays. Not only is your typical holding time so much greater, but now the people that are still in this are ones that have weathered insane volatility over the last couple of months. If they didn't sell with a massive downtrend, we know that they're very weathered holders holders that aren't going to be easily swayed by future fluctuations either versus back then you had a lot of people that were easily swayed by fluctuations.

You look over at the scale of those holding sheet positions that are profitable and those who are unprofitable and it's a very, very telling situation of right now. Despite volatility, 52 of addresses are in the money right now aka profitable, whereas only percent are out of the money and the rest are at about break even. This is so important to understand cryptos, and really any asset tend to be held up largely by the number of people that are in that asset that are holding profitably psychologically. people who have held through this kind of downtrend and are still profitable or much much less likely to sell.

Think about it, if you're just losing the house's money and you're still profitable on your original capital invested, well, you're now much less incentivized to sell. But when you start losing your original capital, that's when it starts getting murky. That's when you start feeling okay. hey, maybe it's time to start walking away.

Ouch. So the fact that 52 are still profitable is a huge level of support. And that's what's held to sheep up so well. And even on the flip side, I mean a counter argument.

The 30 percent who have lost money have weathered so much of a downturn that it's almost like what's going to motivate them to sell at this point. Now, one of the things that I projected back in the fall with the Sheep was that you'd find a level of support, but it would be a little bit higher. I thought it'd be in the 30s. I didn't see the massive, massive crypto winter coming in the overall risk off environment coming, but I did think when push came to shove, it'd be in the 30s.

I was wrong. It actually ended up in the 20s. I'm referring to four zero and 20s of course. But overall, I mean, a lot of people thought this would go down to nothing in a big risk-off environment where bitcoin plunged and all the big dogs plunged.

But overall, it certainly has had staying power, and it's a huge testament to folks who are enthusiastic about this. The market cap has gone from recent lows of 11 billion to now bouncing back to 18 billion within no time at all. Of course, Sheep has had many other periods of fake bull traps in its overall downtrend, but arguably what differentiates this time is it's one of the most pronounced reversals we've had in search interest since the original Peaks and Fall, which looks significantly more pronounced on a 30-day outlook. Quite interesting, because if you look at the overall search interest for crypto as a whole, it's showing very, very little interest.

Of course, it tends to be the case that people are only interested in crypto when they think there's a chance of fast returns. Otherwise, they kind of step back and sell all their positions and wait for the next cycle. And if it's a down cycle, the interest just slowly bleeds. But with the sheep, If you're looking at search interest trends right now, you're starting to get those same crowds that anticipate fast returns starting to show more and more interest in this, which could create a self-fulfilling prophecy if they start buying in, causing more crowds to start looking at it and saying okay, Momentum's coming back Time to buy Momentum is something that slowly builds over time.

You get an attempt at a reversal and then you get another breakout and then you get another breakout. and all of a sudden you start getting more and more Momentum traders in. and then you get the weakest, latest stage Momentum traders in and they come in all at once and you get this massive massive rally right now. We're at a test of some of the early breakouts, so we'll see if this continues.

but let's talk about why this is running right now. One of the biggest catalysts right now is Sheeb's entrance into the Metaverse. Shibaswap.com put out a piece on the value of a potential Shiba Inu Metaverse codename, The Shebverse. They said some of the biggest Metaverse platforms for introducing virtual real estate are sandbox and decentraland we understand the potential, expandability and performing evolution that this type of metaverse option brings to the community.

We are happy to announce and proudly introduce Shiva Lands. These lands found inside our Metaverse will be available for purchase auction really soon and it will be our first step towards allowing the community to jump in to the Metaverse prior to its full release. They said they are building a queue system to make this happen. This queue allows exclusivity by requiring interested parties to hold leash which gives priority and exclusive access to this first selling phase of the land plots in our Metaverse.

So essentially what they are saying is the more leash you buy, the higher up in the queue you will be to get some of the first lands in the Shiba verse. Now the reason this is relevant is because the interest has actually been quite intense. Leash is up nearly 50 in the last 24 hours, which means a lot of people are buying leash and showing a lot of interest to enter this queue because they want to get priority and exclusive access to the first selling phase of of course land plots in the Metaverse which of course has been extrapolated to be seen as a further indication that Cheap as a whole has a lot of big money interest at least lots of retail traders that compound together to be big money as well as institutional players on the sidelines that have just been simply waiting for an opportunity to strike. We could talk all day about whether you think dog coins or virtual land or any of these things have any real world utility or even future digital utility in a metaverse type of world, but I do think that that's kind of missing the point.

This is more about culture, community, and attention more than anything else. And what is special about cheap versus something like a dogecoin? The Sheep Project has done a very, very good job at putting effort in to stay relevant. Hopping on the Metaverse trend, although arguably somewhat late, if they did this back in the fall, sheep would have probably doubled, but at least hopping on trends is a very big way to hear out the people that are actually buying the sheep and make their currency continue to be relevant. And who knows, maybe one day we'll have to choose between a Sheba verse and a Zuckerberg verse, and I'd much rather go with the sheeps in that situation.

But I think that on a practical level, when you're speculated on whether or not this is going to continue, its reversal, you have to take a look at the loud actions that are being taken to keep sheep relevant and in the spotlight. And so far they've been very, very successful. at least as of late in 2022. You've been in a massive, massive bear market for anything meme related, but the Sheep has managed to hold its dedicated cheap army despite the massive worst cycle yet.

I also think that there's a lot of retail momentum traders that really enjoyed the rush and adrenaline of the meme rallies of 2021. they love that feeling of the potential of something going up two, three, four hundred percent in a day, and you quite simply haven't had those types of opportunities for a long time. I think Sheep is an example that that capital is still out there. it's just looking for the right bull trend and momentum trend to trust and start pouring into again.

We could talk about whether that capital could be better placed, buying high conviction plays or not, but hey, I'm not against a certain level of your capital being used for momentum trades. Even if they are speculative. You could have a little bit of fun as long as you have some self-control right? And I think The Sheep is one of those examples of a few meme setups right now that are looking very, very healthy. and if they continue to show health, I wouldn't be surprised if that sidelined spec capital comes right back in and starts playing these movements, causing more of them.

The other layer to this is the squeeze layer, which is something that we haven't really seen play out with the sheep before. The Mali fool had an actually nice piece on this the other day. They said derivative length liquidations this time on bets mainly against Shiba Inu have once again driven volatility this time positively for this meme token. Recent reports suggest that forced liquidations cost traders nearly 10 million dollars.

Approximately three quarters of all sheep futures were short as of the past 24 hours as short positions got liquidated. Forced buying drives up the price of a given token, often creating squeeze-like atmospheres. Now, obviously, the business of short-selling retail assets is very, very lucrative. Short sellers know that retail traders are statistically the demographic that are least likely to understand what they're buying, least likely to have any conviction in what they're buying, most likely to sell at the first sign of panic, and most likely if you repeat their mistakes over and over again.

And obviously those characteristics tend to be more exaggerated in currencies like meme tokens that are named after Docs. Because that's almost entirely crowd and momentum based to a short seller, they probably look at a meme coin dropping fast to think, oh, there's no inherent value to this, so it's an easy short. But meme armies don't go based on intrinsic value, right? They invest in their confidence that culture will bring them returns down the road. I think partially that's as a gag because Lol meme coin.

But I also think that when meme coins perform, it creates a level of long-term loyalty in the holders of said meme coin. And with the Sheba punch short sellers in the damn face, their cheeks are bright red. Obviously, we can anticipate that the short selling situation will only get worse if Sheba continues to get more and more inflows. Now, the other thing that I do want to talk about is the state of Sheb token burning.

So the Ceo of Crypto Label Bigger Entertainment tweeted back on February 2nd that if a certain amount of sheep army pitching five dollars, they'll burn one billion sheep and their largest burn party ever slated for Valentine's Day, which of course is Monday. What also happens on Monday Actually, Monday night is the coupon code for Zip Trader U Valentine Expires, so make sure to hit that link below if you haven't already. spice up your Valentine's Day with some analysis, education, and private chat, Daily morning briefings and prize target lists, but shameless. Plug aside, they're going to have a sheep burn party on Monday and it doesn't appear that they've hit their goal for a billion sheep being burned so far.

The burn pot is 194 million and look, to be honest with you, I've never really understood the excitement behind these burn parties. I mean, even if you burned 10 billion sheep, it's not that big of a deal. The circulating supply is like 549 trillion. but at the end of the day, it does create an event for people who are enthusiastic about cheap to gather and it creates a lot of media attention.

It is something that keeps interest alive in fans honestly. It also kind of blows my mind that people would donate to companies in order to burn sheep for them. I don't know why people don't just burn it themselves, but hey, maybe that's part of the fun? I don't know. Lastly, just to show some funny enthusiasm, as of February 3rd, a Shiba Inu themed restaurant has opened its doors.

The blockchain burger joint fast food restaurant is now open and it is called Wellies. They naturally accept Sheba as a form of payment. Of course I had to go and look up the Google images for you and sure enough, you got a Sheba themed food place. It says here I am Ryoshi we eat Welly Ryoshi, presumably referring to one of the main founders of the Sheep Project kind of looks pretty damn tasty to be honest.

And of course, they sport sheep army in their marketing. People out there that think that sheep is going to get so much attention in the future that they're willing to build businesses on it. Now there's headlines popping up saying that the sheep themed restaurant is ready to expand globally, and you've got people on Twitter speculating that cheap restaurants are going to be the next Mcdonald's I mean, this is how you create insane attention through arguably somewhat ridiculous, but also very entertaining hype. And that's kind of the cultures of memes.

People look at this hype and they think it's entertaining, so they spread it and they kind of go along with it. in the back of their mind knowing that it's ridiculous, but also in the back of their mind knowing that hey, if it's ridiculous enough and it gets enough attention, it might actually happen. It's fun and entertaining speculation at its finest. So anyways, a lot going on with the Sheep right now and we'll see if the hype manages to continue from a ta' perspective.

I generally tend to look at previous failed bull trap heights as levels to pass to get healthier breakouts, and the next critical level to break is that December 23rd to 24th height you break that you bring in the next level of Momentum Traders. Anyways, folks that caps off this video, let me know what you think about the sheep down below. If you are looking to learn how to trade and analyze stocks, we are having our biggest sale since Black Friday Coupon Code Valentine will get you a very sizable discount off Ziptraderu before checkout. Make sure to check out the link below and read a little bit about it to learn what you will get lifetime access to.

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