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Shiba Inu Continues to Soar: Here's Why

By Chris MacDonald – Nov 15, 2021 at 10:53AM

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The cryptocurrency remains one of the hottest meme tokens in the world right now, seeing strong upward momentum.

What happened

For cryptocurrency investors looking at meme tokens, Shiba Inu (SHIB 1.45%) remains the hottest token in town. It's once again on the run, having jumped 10% in earlier trading today before settling down.

This momentum is infectious, and cryptocurrency investors and traders have reason to like the recent price action. This is a token that remains down more than 40% over the past two weeks.

Today's move follows the broader cryptocurrency market, suggesting this token may be stabilizing at these levels. Additionally, speculation last week that Tesla (TSLA 11.07%) CEO Elon Musk might accept Shiba Inu as payment for his electric vehicles has neither been confirmed nor denied. And while Musk has repeatedly favored Dogecoin (DOGE 1.36%) over its "little brother" Shiba Inu, there's hope among investors that he will once again turn his tweeting attention toward SHIB.

So what

For investors in Shiba Inu, any sort of positive catalyst is welcome at this point. A series of potential catalysts continue to be discussed on social media, where the token remains one of the hottest tickers on various popular discussion boards. 

One catalyst that many retail investors are banking on right now is a potential Shiba Inu listing on Robinhood Markets (HOOD 8.09%). A large-scale petition has gathered steam, with approximately a half-million signatures gathered at the time of this writing. With Robinhood being a popular trading platform for cryptocurrency enthusiasts, such a move could provide momentum to the meme token.

Additionally, cryptocurrency investors will be keeping a close eye on what thought leaders such as Elon Musk say and do in the weeks to come. Should Shiba Inu gain more notoriety among cryptocurrency influencers, the possibility for capital flows into this token could result in another momentum-driven rally.

Now what

Right now, Shiba Inu remains one of the hottest and most-volatile cryptocurrencies. For those who witnessed the over 10,000,000% gains this cryptocurrency saw this year alone, volatility has certainly been a good thing on the upside.

However, this volatility can work in both directions. And investors need to remember that volatility is a measure of risk in the investing world.

For now, this is an investment best reserved for those on the higher end of the risk-tolerance spectrum. 

Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy.

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