Shiba Inu Price Skyrockets 45%, Surges Past $0.000045: Here’s Why
March 05 2024 - 4:40AM
NEWSBTC
The Shiba Inu price is going absolutely parabolic these days.
Within the last 9 days, the SHIB price surged by more than 380%.
Today, SHIB marked a two-year high at $0.00004574. Although the
price suddenly dropped below $0.00002, marking a 54% within 2
hours, the price already recovered to above $0.000038. Here are
four reasons driving the Shiba Inu price: #1 Bitcoin’s Rally And
Its Implications For Altcoins Bitcoin’s price rally, particularly
after the US Securities and Exchange Commission’s (SEC) approval of
spot Bitcoin Exchange-Traded Funds (ETFs) in January, has set the
stage for a broader cryptocurrency market rally. The approval not
only enhanced Bitcoin’s legitimacy among traditional investors but
also acted as a catalyst for its price to approach its all-time
high. The Bitcoin halving event, anticipated in April, further adds
to the bullish sentiment, as historical data suggest that halving
events, which reduce the reward for mining new blocks by half, tend
to lead to substantial price increases due to the reduced supply of
new Bitcoins entering the market. The relationship between
Bitcoin’s price movements and the altcoin market, including meme
coins like Shiba Inu, is well-documented. Bitcoin’s rally has a
“halo effect” on the broader market, creating a risk-on environment
where investors are more willing to explore higher-risk assets,
leading to increased investments in altcoins and meme coins.
Related Reading: Shiba Inu & Other Memecoins See 3,000% Spike
In Volume: Good Sign For Rally? This phenomenon is further
amplified by the Fear Of Missing Out (FOMO), as investors rush to
capitalize on potential gains, driving up prices in a
self-reinforcing cycle. #2 Market Psychology And Meme Coins As
reported yesterday, meme coins like SHIB could be one of the
hottest bets in this crypto bull run. Why? Andrew Kang, co-founder
and partner at Mechanism Capital, offered an analysis of meme coin
psychology. The appeal of meme coins lies in their ability to
galvanize a community-driven speculative wave. Meme coins serve as
a more accessible and globally available speculative vehicle
compared to traditional stocks or more complex cryptocurrency
projects. The characterization of meme coins as a “Skill-based
Global Lottery Platform” by Kang encapsulates the unique blend of
community effort, skill, and luck that defines their market
dynamics. This communal aspect, coupled with the thrill of
speculation, fosters a highly engaging and participatory market
environment. Related Reading: Meme Coin Mania: Why Shiba Inu, PEPE,
Dogecoin Are Far From Finished Furthermore, the global
accessibility and simplicity of meme coins make them an attractive
entry point for new investors in the cryptocurrency market, thereby
expanding the market base and increasing the liquidity and
volatility of these assets. This broad appeal is crucial during
bullish market phases, where the influx of new participants can
significantly amplify price movements. #3 The Elon Musk Effect Elon
Musk, renowned for his significant influence on crypto markets,
particularly with meme coins like Dogecoin and FLOKI, has once
again made waves with his social media activities. On February 26,
Musk hinted at returning to “meme grindstone,” indirectly impacting
meme coins. Fine, I will get back on the meme grindstone 😂 — Elon
Musk (@elonmusk) February 26, 2024 While not mentioning SHIB
directly, the timing of Musk’s tweet corresponded with a notable
uptick in its market performance. Several meme coins started to
rally on February 26. The market seems to have interpreted his
tweet as an indication that the present moment is opportune for
investing in DOGE and other meme coins such as SHIB. #4 Technical
Breakout For Shiba Inu Price The Shiba Inu price exhibited a clear
technical bullish setup. Last December, the price of SHIB surged
past a two-year ascending triangle pattern and underwent a
successful retest until early February. This development laid the
groundwork for the substantial price surge, in conjunction with the
previously mentioned factors. SHIB’s breakthrough past the 20-,
50-, and 100-week Exponential Moving Averages (EMAs) affirmed its
strong bullish trend. After surpassing the August 2022 peak of
$0.00001791, SHIB’s upward momentum became unstoppable. Featured
image created with DALLE, chart from TradingView.com
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