Bitrabo Editorial
A prominent cryptocurrency analyst known as Trade The Flow has recently offered insights to the crypto community on potential trading strategies to navigate the volatile market conditions. Surprisingly, he expressed a bearish stance on Shiba Inu (SHIB), Cardano (ADA), and Litecoin (LTC) while presenting these trade ideas.
Effective Long/Short Pair Trading Strategy for Shiba Inu, Cardano, And Litecoin
In a post on X (previously Twitter), Trade The Flow indicated that a long/short pair trading strategy works effectively during choppy market phases. He outlined various long/short pair trades that could be implemented. Firstly, he suggested going long on Bitcoin (BTC) while shorting Litecoin, emphasizing that this approach was a logical move.
He justified the Bitcoin long position by highlighting its status as a market leader, recent ETF incorporation, and recognition as digital gold on a global scale. Conversely, he criticized Litecoin as an outdated Proof of Work coin with no network effect or future catalysts.
Another trade idea proposed by the analyst was to go long on Ethereum and short on Cardano. He drew parallels between this strategy and the previous BTC/LTC trade. Trade The Flow underscored the potential of Ethereum with an upcoming ETF and various layers and protocols being built on it, while dismissing Cardano as a stagnant platform with minimal real-world usage.
Trade The Flow also suggested a pair trade involving longing Pepe (PEPE) and shorting Shiba Inu, citing the former’s established position in crypto culture and the declining relevance of the latter.
Diverse Long/Short Pair Trade Recommendations
Additionally, Trade The Flow discussed other pair trade ideas, such as longing Pendle and shorting ONDO, emphasizing the significant protocol metric differences between the two tokens. He particularly highlighted concerns regarding ONDO’s FDV/TVL ratio and anticipated a reversal of this ratio, especially as substantial token unlocks loom.
Lastly, Trade The Flow mentioned a trade involving longing Lido (LDO) and shorting Ether.fi (ETHFI), characterized as a conventional pair trade between two liquid staking protocols on Ethereum. Despite acknowledging the associated risks, he noted the potential for ETHFI’s volatile price movements due to its low float.