Shiba Inu (SHIB) recently captured market attention with a sudden and significant price surge on the Coinbase exchange, demonstrating the altcoin's inherent volatility. This rapid upward movement, however, was quickly met with a retracement, painting a complex picture of buyer enthusiasm encountering seller resistance.
Shiba Inu's Sudden Surge and Retracement
The cryptocurrency experienced a sharp, albeit brief, rally, with its price jumping from $0.00001203 to $0.00001303. This rapid appreciation was notably accompanied by a staggering 169% increase in SHIB/USD trading volumes on Coinbase, as reported by CoinGlass data. The price action formed an intraday candlestick characterized by a long upper wick, a classic indicator that while buyers initially propelled the price higher, sellers eventually stepped in to drive it back down. Following this sharp ascent, Shiba Inu subsequently retraced much of its gains, aligning with a broader market downturn. Despite this pullback, the $0.000012 mark has proven to be a recurring support level, with SHIB bouncing off this price point multiple times, including a significant surge on August 22. This pattern suggests a consistent floor from which the asset tends to rebound, as seen in the latest price move that once again originated from this support.
Underlying Market Dynamics
Beyond spot market activity, increased engagement in the derivatives market also coincided with these price fluctuations, with volumes soaring to $200.16 million. Furthermore, the long-short indicator for Shiba Inu currently stands at 1.05, suggesting a slight preponderance of buyers over sellers. This dynamic could partly explain the upward pressure observed, even as profit-taking eventually led to a price correction.
