The Shiba Inu price has had a remarkable week. The SHIB token price has jumped by more than 67% in the past 24 hours, bringing its 7-day gains to more than 200%. This rally has brought its total market capitalization to more than $8.58 billion and pushed its position to 21. It is now bigger than popular digital currencies like VeChain, Polygon, Tron, and Monero.
Why is SHIB surging?
There are two main reasons why the Shiba Inu price has surged to its highest level since September. First, hype has returned to the coin after Elon Musk tweeted about his dog, known as Floki. As such, some cryptocurrency watchers believe that Musk could be turning bullish on the coin.
This would be significant since Musk is the richest man on earth with a total net worth of more than $211 billion. Also, he is a respected person who has helped start several successful companies like Tesla, SpaceX, and PayPal.
As a result, the enthusiasm about Shiba Inu has exploded in social media platforms like Reddit, StockTwits, and Twitter. This has pushed demand for the coin substantially. The fact that SHIB is offered in popular exchanges like Binance and Coinbase has helped.
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Still, such parabolic rallies should be taken with a grain of salt. For one, at times, the rallies tend to end in tears to new buyers as the existing buyers start distributing their holdings.
Second, the Shiba Inu price has rallied because of the overall performance of cryptocurrencies. In the past 24 hours, digital currencies have defied the broader financial market and rallied. Bitcoin has risen to almost $51,000 while the total market value of cryptocurrencies has jumped to more than $2.2 trillion. This has happened at a time when there are fears of inflation, which has pulled stock significantly lower.
Shiba Inu price prediction
The 30-minute chart shows that the SHIB price has made a strong bullish trend in the past few days. The coin has jumped by more than 235% this month. Along the way, it has moved above the 25-period and 50-period moving averages. At the same time, it has moved above the initial bullish pennant and bullish flag pattern that are shown in green.
Therefore, while the Shiba Inu price may continue with the bullish trend, there is a likelihood that it will erase most of these gains as the enthusiasm and volume fade.