Today, popular dog-themed cryptocurrency Shiba Inu (CRYPTO:SHIB) has surged more than 32% as of 9:30 a.m. ET. This move brings Shiba Inu to new weekly highs, and is a continuation of strong momentum yesterday.
There appear to be two key catalysts behind today's price action.
First, market-related exuberance appears to be back, with most major cryptocurrencies trading significantly higher today. That said, Shiba Inu is currently the biggest winner out of any top-50 token, suggesting this meme cryptocurrency could have regained its momentum.
Second, a company-specific catalyst appears to be at play for Shiba Inu today. The Kraken exchange announced it would be supporting Shiba Inu from Nov. 30 on.
Because it's a meme token, momentum is everything for Shiba Inu. Strength in the crypto markets, combined with strong search trends for Shiba Inu this past week, could mean retail investor interest in SHIB is back.
However, this Kraken listing is a big deal. Kraken is the fourth-largest crypto exchange in the world, and is U.S.-based. This exchange listing provides more options for retail investors to get in on the action with Shiba Inu. Considering the fact that Shiba Inu recently passed 1 million wallet-holders, the hope for many speculators is that even more individuals will jump on this momentum-driven rally.
It's important to note that the Kraken listing will allow for trading on this platform, but will not provide SHIB futures or margin trading services. That said, a win is a win, with retail investors and speculators cheering this move.
Momentum appears to be back in the meme token space, with Shiba Inu once again leading this surge. Speculation that another rally is underway is running rampant right now. Accordingly, this is a token that's likely to see some significant volatility from here.
How high Shiba Inu can run from here remains to be seen. Indeed, it appears this token is finally headed in the right direction. That said, investors should always be aware of the extremely high risks associated with digital assets, and meme tokens in particular. We've seen what can happen when momentum dries up.
However, for now, the party appears to be on.