Shiba Inu price is attempting to stage a comeback after it crashed sharply yesterday. SHIB is trading at $0.000010, which is 70% above its lowest level yesterday. The coin has a market capitalization of more than $3.8 billion, which is sharply lower than its all-time high of more than $10 billion. Its bigger rival, Dogecoin, has crashed by 12.4% in the past 24 hours.
What happened: For starters, Shiba Inu is a relatively new cryptocurrency that has moved from nowhere to become one of the biggest in the industry. This growth was mostly because of the strong action by traders, especially in China. As the price rose, many traders bought many coins, hoping that it will become the next big thing. It ended badly as the coin’s price has fallen by more than 75% from its all-time high.
The losses accelerated yesterday as China announced of a potential crackdown of cryptocurrencies. The decline was most pronounced because all Shiba Coins are owned ordinary traders, who tend to exit their trades when market conditions change.
What next for Shiba Inu price?
Turning to the 45-minute chart, we see that the SHIB price has bounced back by more than 70% as traders rush to buy the dips. The coin is still slightly below the overnight’s high of $0.0000123. It has also formed a small ascending channel pattern.
So, is this the start of a major rally? It is difficult to tell because of the significant volatility of the coin. If it rises, the next key level to watch will be $0.0000123, which is slightly below the overnight high and along the lowest level on May 17. However, we also can’t rule out another dip towards this week’s low of $0.000006.