Why Did Shiba Rally By More Than 30%?
The meme coin and Doge killer, Shiba Inu, has just soared by more than 30% in 24 hours!
With the popular cryptocurrency now being listed on America’s most popular exchanges and with the news of one whale purchasing more than 25 billion $SHIB, let’s look at the factors that led to Shiba Inu’s recent rally.
Shiba Inu price
October was quite the peak for Shiba Inu, which helped it soar by a crazy 800%, making highs of $0.00007487. What followed was a massive correction in November, while most cryptocurrencies corrected by 5–10% due to the latest crypto tax bill along with the rise of the new Covid-19 variant.
But Shiba Inu has once again taken off, as it made an intraday high of $0.00005097 on Tuesday, the 30th of November. This was a rise of more than 31% within 24 hours for the popular meme coin, which also made it the highest traded cryptocurrency on Tuesday. This is the highest the coin has soared since November 19th, when it was trading at $0.00005100.
According to the cryptocurrency’s technical, the $0.00003560 zone was an important support level. The coin rebounded from this level, which signalled a shift in trend. Since the Omicron variant was a big reason for not only the cryptocurrency markets but also for the stock markets to correct as well last week, this type of rebound was expected.
Since then, Shiba Inu has corrected by 4.5% in the last 24 hours and is trading at $0.00004645 as of December 1st, according to Coinmarketcap. After gaining more than 30% in just one day, Shiba Inu even flipped Avalanche’s AVAX, as it has become the 11th largest cryptocurrency in the world, in terms of the market cap which is currently at $26 billion. It is also very close to flipping Doge since its rival sits in 10th place for now. The two biggest meme coins previously had a very close back and forth when Shiba flipped Doge for the first time during its monumental bull-run back in October.
But after such a huge correction, what has led Shiba Inu’s price to go up yet again? Let’s find out!
Shiba listed on Kraken exchange
One of the biggest reasons for the rise that we have seen for Shiba can be attributed to its listing on a major exchange. Kraken is the second-largest crypto exchange in America in terms of trading volume, so naturally, when the exchange announced its support for Shiba Inu, investors and the market received this as a possible catalyst for bullish sentiment.
The listing officially went live after this post, which has given the opportunity to millions of new investors to come aboard the Shiba Inu train.
Shiba Inu has also received a lot of attention worldwide. The biggest cryptocurrency exchange in Brazil, Mercado Bitcoin, also announced that Shiba Inu would finally be accepted and added to their platform.
Integrations on Shiba Inu platform
Shiba Inu can also attribute its success to several high profile integrations in the last month.
Shiba Inu is starting to be accepted as a payment mechanism by more and more companies. One such company is the crypto payments service, Coingate. In November, Coingate announced the official integration of Shiba Inu on their platform. This means that all users, merchants and traders are allowed to shop, buy and trade using Shiba Inu.
Another company that has confirmed that its accepting SHIB as a form of payment is Newegg. This company is a leading tech-focused e-commerce retailer, which runs out of North America. The announcement came on a giant billboard which was displayed in Downton Los Angeles. The message read, ‘We are always looking for ways to innovate the shopping experience on Newegg.com, and something our customers want is flexibility and options, including the ability to pay with a wide range of cryptocurrencies’.
They formally announced that Shiba payments will be accepted starting early December. Newegg also has a reputation of using the crypto space for good. They were one of the first major ecommerce companies to accept Bitcoin as a payment method way back in 2014, much before it was mainstream. They have subsequently also added Dogecoin as a payment option in early 2021, and now their rival.
Entry of Shiba whales
Another factor that may have contributed to the huge rise of Shiba Inu is the addition of a new whale. We have seen previously with Shiba that a majority of the coins are held by large whales. While this may be a good thing to initiate a huge rally after consolidating for some time, it has also led to huge dumps which have hurt the coin’s performance. But this time, one whale bought 25 billion tokens of SHIB, which is worth around $56 million. The whale entered the market just when Shiba Inu was taking off, and with a buy entry of such a huge amount, it may have helped in further increasing the rally.
The same whale also holds $26 million worth of Decentraland, which has been the largest metaverse token that exists on the Ethereum blockchain.
Most other whales entered the Shiba Inu cryptocurrency during November after the massive sell-off that took place. Shiba even has one of the largest numbers of whales out of any cryptocurrency, since about $2.3 billion of Shiba is held by whales.
Shib entering the gaming space
Shiba Inu has gone ahead and teamed up with the game creator and the former Vice president of technology at the popular gaming company, ‘Activision’, David Volk. This is in order to consult on the play-to-earn non-fungible token that they have been working on. Since NFTs are the new trend to come out of smart contracts and the blockchain systems in Ethereum, the SHIB ecosystem is looking to re-create this popularity as well. According to the anonymous developer of SHIB, Ryoshi, Shiba is looking to launch a decentralized gaming community called Shiba Inu games.
Now, Shiba Inu which was once only rising due to the number of popular Twitter users that were talking about it, is slowly expanding more and more, not only in terms of the sheer reach it has thanks to multiple new listings but also into new ventures. The entry into the gaming sector can help redefine the success of the cryptocurrency, but there’s also a little to worry about.
The increase of Shiba whales has been one of the reasons why the coin has risen by so much in just 24 hours, which means the possibility of a dump is not out of the picture. Make sure to weigh the negatives against the positives, and only then make an investment choice.
Will you be buying Shiba Inu anytime soon? Let us know in the comments section below!