The Shiba Inu SHIB price surged 45%, peaking above $0.000045

The price of Shiba Inu is definitely parabolic these days. The SHIB price has soared by more than 9% in the last 380 days. Today, SHIB hit a two-year high of $0.00004574. Although the price suddenly fell below $0.00002, a 54% drop in 20 hours, the price has now recovered above $0.000032.
The rise in Bitcoin's price, especially after the U.S. Securities and Exchange Commission's (SEC) approval of spot Bitcoin exchange-traded funds (ETFs) in January, set the stage for a broader cryptocurrency market rally. The approval not only strengthened Bitcoin's legitimacy among traditional investors, but also served as a catalyst for its price to approach all-time highs.
The expected Bitcoin halving event in April further exacerbated the bullish sentiment, as historical data suggests that the halving event halves the reward for mining new blocks, often leading to a significant price rise into the market due to a reduced supply of new bitcoins.
The relationship between Bitcoin's price action and the altcoin market, including meme coins such as Shiba Inu, is well documented. Bitcoin's rally has had a "halo effect" on the broader market, creating a risky environment that makes investors more willing to explore risky assets, leading to increased investment in altcoins and meme coins.
This phenomenon is further amplified by the "fear of missing out" (FOMO) as investors rush to capitalize on potential gains, driving prices higher in a self-reinforcing cycle.
The appeal of meme coins lies in their ability to spark a wave of community-driven speculation. Compared to traditional stocks or more complex cryptocurrency projects, Meme coins are a more accessible and globally available speculative tool.
Kang describes the meme coin as a "skill-based global lottery platform" that encapsulates the unique combination of community effort, skill, and luck that defines its market dynamics. This publicity, combined with the stimulus of speculation, creates a highly engaging and participatory market environment.
In addition, the global accessibility and simplicity of the meme coin make it an attractive entry point for new investors in the cryptocurrency market, expanding the market base and increasing the liquidity and volatility of these assets. This broad appeal is crucial during the bull market phase, where the influx of new players can significantly amplify the price action.
Shiba Inu prices show a clear technical bullish pattern. In December last year, SHIB's price broke out of a two-year ascending triangle pattern and successfully retested it until early February. This development, along with the previously mentioned factors, has set the stage for a significant increase in prices.
SHIB's breakout of the 20-, 50-, and 100-week exponential moving averages (EMAs) confirms its strong bullish trend. After breaking through the August 2022 peak of $0.00001791, SHIB's upward momentum has become unstoppable.
(Source: Jake Simmons)