Here's what's driving stability with Shiba Inu today

Shiba Inu is eerily calm today. Is that a good thing?

| More on:
a cute shiba inu smiles in the foreground of a field of wildflowers.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on International Stock News

A woman holds a soldering tool as she sits in front of a computer screen while working on the manufacturing of technology equipment in a laboratory environment.
International Stock News

Up nearly 80% this year, does Nvidia stock have room for more?

Nvidia's stock added a lot of its gains the day after Q4 earnings.

Read more »

Piggy bank on an electric charger.
International Stock News

If you'd invested $1,000 in Tesla stock 5 years ago, here's how much you'd have today

Tesla bears may not have noticed it, but Tesla profits are forecast to 3x over the next five years.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
International Stock News

Bull vs. bear: Can the S&P 500 keep rising in 2024?

We review the bull and bear case for the S&P 500 this year.

Read more »

woman with coffee on phone with Tesla
International Stock News

Why Tesla stock put pedal to metal today

Tesla's robotaxi is coming in August.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
International Stock News

If you invested $10,000 in Nvidia stock the day ChatGPT came out, this is how much you'd have today

Buying Nvidia when the disruptive AI chatbot launched would have been a smart move.

Read more »

A Tesla car driving along a road at sunset
International Stock News

Why Tesla stock was climbing today

Investors were encouraged by news of a price hike on the Model Y.

Read more »

Plate with coloured wedges being parcelled out like a slice of pie representing a share split
International Stock News

Stock-split watch: Is Nvidia next?

Nvidia last split its stock when it traded for a pre-split $744 in 2021.

Read more »

A woman in jeans and a casual jumper leans on her car and looks seriously at her mobile phone while her vehicle is charged at an electic vehicle recharging station.
International Stock News

1 Wall Street analyst thinks Tesla stock is going to $125. Is it a sell?

Tesla is no longer a magnificent stock, according to a Wells Fargo analyst.

Read more »