The Shiba Inu price has staged a remarkable recovery after crashing by more than 40% yesterday. The SHIB coin is trading at $0.000020, which is more than 35% above its lowest level yesterday. The meme coin is now worth more than $8 billion and is the 24th largest digital currency in the world.
What is Shiba Inu?
I explained what Shiba Inu is in my previous article, where I compared it to Dogecoin. For starters, Shiba Inu is a digital currency that also developed as an experiment. It is seen as the best-performing Dogecoin killer. The developers describe it as an “experiment in community building” and claim that there are more than 300k people in that vibrant community.
Shiba Inu price has surged because of several reasons. First, the coins are extremely cheap, which means that many people can buy thousands of them without breaking the bank. This has made it extremely popular in countries like China.
Second, the SHIB price has surged after it was accepted in several Chinese crypto exchanges. This made it easier for people to bet on the currency. This has come at the urging of top celebrities in China who have encouraged their Weibo and WeChat followers to invest in it.
Third, the coin has rallied after Coinbase said that it would add Dogecoin into its platform. This raises the possibility that the exchange will also add Shiba Inu in the next few months.
The most important news on Shiba Inu came yesterday when it was revealed that Vitalik Buterin had donated 50,000 trillions of Shiba Inu coins worth more than $1 billion to the Indian Covid relief fund. This made it one of the biggest donation made by an individual. Indeed, this is part of the reason why the Shiba Inu price declined yesterday.
So, what next for the Shiba Inu price?
In my first article on Shiba Inu, I wrote that the coin was highly volatile. Also, I wrote that I do believe that this currency is not worth the billions it is worth today. However, I recommended that traders and investors should avoid shorting the currency. By shorting, a trader usually bets that the price will drop. This is risky because many traders have suffered a short squeeze by betting against some worthless currencies like Dogecoin.
Meanwhile, looking at the 15-minute chart, we see that the SHIB has formed an inverted head and shoulders pattern. In technical analysis, this is a bullish sign. Also, we see that the Average True Range (ATR) has declined sharply, implying that volatility has reduced. Therefore, I believe that the currency will extend its gains in the near term. Let’s wait and see.
