This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
What happened
Today's fluctuations with cryptocurrency Shiba Inu (CRYPTO: SHIB) don't necessarily register on the meme-token Richter scale. In fact, by all accounts, it's been a "steady-as-she-goes" day, with Shiba Inu fluctuating within a very modest 3.5% band throughout the day. As of 4:15 p.m. ET, Shiba Inu is up 1%, though its daily gains and losses haven't exceeded 2.5%, a telling statistic.
Broadly speaking, it appears crypto investors are taking a breather today, following some "bad-news-is-good-news" rally over Indian crypto legislation. Bond yields have stabilized and there's relatively little news flow driving specific meme tokens like Shiba Inu -- at least, not enough news to push this token by a double-digit percentage margin in a specific direction.
So what
In addition to these macro factors, investors looking at Shiba Inu may see some other things they like. Expectations that a Robinhood listing could arise and the potential for a Shiba Inu-related metaverse future seem enticing. For bears, concerns about interest rates and the risk-off trade providing strong headwinds remain.
Accordingly, it appears these factors have largely cancelled themselves out. Whether this rather calm period will continue or not is questionable. However, for now, investors appear to be pondering in which direction this token could be headed in the near term.
Now what
Just because today's been a calm day in Shiba Inu land doesn't mean this is going to continue forever. Far from it. Shiba Inu has shown itself to be one of the most volatile tokens in the market. I don't expect that to change any time soon.
That said, Shiba Inu's size and supporter base is impressive. Days like today can suggest that investors may be "accepting," to some degree, Shiba Inu's valuation. It's very likely too soon to tell whether this will continue over the near term. Certainly, over the longer term, I expect volatility to remain higher than average, given how wildly this token has moved in recent months.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
