The Shiba Inu price is attempting to bounce back after crashing to Monday’s low of $0.000085 in the overnight session. SHIB has jumped to $0.0000090, which is 5.45% above the lowest level overnight. According to CoinMarketCap, Shiba Inu has a market cap of more than $3.4 billion, making it bigger than coins like Crypto.com Coin, IOTA, Bitcoin SV, and Algorand, among others.
What happened: Shiba Inu has lost its luster after the relatively unknown currency surged to $0.000040. It has dropped by more than 70% from its all-time high.
For starters, Shiba Inu is a relatively new cryptocurrency that started as an experiment. After being launched, the currency surged as social media influencers in platforms like Weibo and Wechat promoted it. As they did that, many retail traders rushed to buy the coin because of the fear of missing out (FOMO). They wanted to capture the next Dogecoin in its early days.
However, as cryptocurrencies dropped last week, SHIB’s price dropped deeper because of the fact that it was mostly bought by speculators. So, what next for Shiba Inu?
Turning to the 30-minute chart, we see that the Shiba Inu price has been in a relatively tight range in the past few sessions. The currency is oscillating at the short and longer moving averages while the Average True Range (ATR) has fallen in a sign of low volatility.
At this stage, there are two potential scenarios for the SHIB price. First, the forces that propelled it to an all-time high could do it again and push it to the resistance at $0.000012. Second, the sell-off could accelerate and push the memecoin to last week’s low of $0.00006.