Shiba Inu (SHIB 1.46%) is sinking in today's trading. The cryptocurrency's token price was down roughly 6.9% over the previous 24-hour period at 11:30 a.m. ET Monday.
The cryptocurrency space is getting hit with a wave of bearish momentum as investor appetite for risk appears to be wavering, and SHIB is no exception. Its token price is now down roughly 11.8% over the last week of trading.
There don't appear to be any major new developments driving sell-offs for Shiba Inu and the the crypto market at large today, but risk-off sentiment has generally been shaping trading lately. With hawkish Federal Reserve police, high inflation, Russia's invasion of Ukraine, and other factors, investors are weighing a bevy of bearish catalysts and opting to liquidate positions in cryptocurrencies and stocks.
Shiba Inu now has a market capitalization of roughly $12.75 billion, and it ranks as the 15th-largest cryptocurrency by valuation.
In recent months, SHIB has traded largely in line with the broader cryptocurrency market, and it looks as if market momentum will continue to be the main pricing driver in the near term. While the team behind Shiba Inu is rolling out expanded compatibility features and a metaverse themed around the token's meme mascot, the extent to which these initiatives will create bullish catalysts for the token is hard to predict.
If the broader crypto space sees another major bullish swing, it's reasonable to think that Shiba Inu's token could enjoy a substantial rally. However, investors should understand that forecasting crypto cycles is difficult, and the potential for big returns is counterbalanced by high risk.