The Shiba Inu coin has risen massively in the last few hours. This meme coin gained about 20% and thus made an extreme price jump for the first time in a long time. Meme coins remain a hot investment despite the backlashes from tech crypto junkies. Why is SHIB up 20% and should you jump on board to buy SHIB? Let’s dive right in!
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Shiba Inu Coin Consolidated for a long time
In the last few weeks, things have been rather quiet for the Shiba Inu Coin. For a long time, bearish news dominated the market, and meme coins suffered losses as a result. Meme coins such as Dogecoin or the Shiba Inu record high price gains, especially during bullish times.
In mid-January, the Shiba Inu once again posted strong gains when Elon Musk announced that the coin could be used as payment for Tesla merchandise. After that, however, little was heard of the cryptocurrency. If we look closely at figure 1, we can clearly see the consolidation that occurred since the 22nd of January 2022. The current price boom was imminent after such price-action.
Why is SHIB up by 20%?
Currently, there has been a massive increase in the price of Shiba Inu by around 20%. It went from $0.00023 to $0.00028 in the past 24 hours. The rise came at a time when bitcoin and other coins are in more of a sideways movement. This shows that SHIB tends to be a lagger when other major cryptos start to move.
Meme coins like SHIBA or DOGE can always see extreme price jumps within a short time. There is always uncertainty as to how stable these price movements are. Meme coins are considered to be much more volatile than other types of cryptocurrencies, hence their current +20% price-action.
Can SHIB double in Price?
Based on the current technical formation of SHIB, a break upwards in the trend was bound to happen. While other cryptos broke away from their downtrend and reversed, the SHIB token lagged. Afterwards, a price boom occurred to compensate for this price lag. Today, we can see a break in the resistance price of $0.000028.
If the current price stays above the $0.000028 area and the crypto market in general continues on its bullish trend, SHIB should most likely return to its previous levels.
With the rise of the Shiba Inu course, we can be the great potential of the meme coins. If the bull market picks up speed again in February, these coins could see extreme price increases again in the next few weeks.
It is therefore advisable to also keep a certain proportion of meme coins in your portfolio. Although there is a higher risk with this investment than with Bitcoin, for example, the possible profits can be extremely high.