Shiba Inu rides Bitcoin wave, jumps 18% in 24 hours – Is the rally here to stay?

• SHIB recently surged by 18% in a single day.
• The SHIBArmy’s fervent support and SHIBA INU’s social dominance drive the token’s momentum.

Shiba Inu [SHIB] has recently caught the attention of the crypto community by surging 18% within a single day, supported by fervent community support and heightened social sentiment.

As meme coins continue to captivate audiences with their unpredictable price swings, SHIB stands out as an emblem of both hype and speculation-driven rallies. 

Bitcoin as a catalyst for Shiba Inu?

SHIB’s surge aligns with Bitcoin’s recent upward movement, suggesting that Shiba Inu may be riding a broader wave of bullish sentiment in the market.

However, SHIB’s sharp climb highlights the unique power of community-driven coins, where price action often defies traditional valuation metrics and instead follows social cues and influencer-driven hype.

The Shiba Inu community, known as the ‘SHIBArmy,’ plays a pivotal role in driving the token’s momentum. The token’s strong online presence, fueled by passionate holders and active discussions, amplifies interest and speculative buying.

Price action: Breaking new ground or temporary spike?

Shiba Inu’s daily price chart shows a sharp upward movement from the $0.00002000 level to around $0.00002500, indicating a potential breakout.

However, despite the rapid ascent, RSI  sits above 70. Historically, overbought levels often lead to brief corrections as traders lock in profits.

Source: TradingView

Furthermore, the OBV reveals increased buying volume, which confirms heightened interest from new and existing investors.

While the breakout may tempt traders to chase the rally, caution is advised, given that meme coins often see short-lived spikes fueled by speculative trades rather than sustained demand.

Social sentiment metrics: A key driver of Shiba Inu’s growth

The spike in social volume and social dominance, paired with a high social rank, demonstrates that Shiba Inu’s rise is largely sentiment-driven.

This suggests that its recent surge may be more reflective of speculative enthusiasm than long-term investment conviction.

Source: Santiment

The coin’s high social rank reinforces the idea that visibility and engagement are critical in meme coin performance, especially as retail investors and smaller traders rally around popular tokens.

Read Shiba Inu Price Prediction 2024-25

Why do retail investors flock to memecoins?

Retail investors are drawn to memecoins because of the unique blend of high-risk, high-reward potential and the influence of community-driven hype that makes these coins accessible and engaging.

For SHIB, the recent 18% surge highlights this allure: it’s a coin that promises massive upside through its highly volatile price swings, magnified by relentless support from the SHIBArmy.

With Bitcoin’s resilience setting a bullish tone, smaller investors see Shiba Inu as a chance to capitalize on surges that larger assets rarely exhibit.