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As seen on a TradingView chart, Shiba Inu suddenly saw a sharp price spike on the Coinbase crypto exchange, as its price swung from a low of $0.00001203 to reach $0.00001303.
The price action has formed an intraday candlestick with a long upper wick, which suggests that Shiba Inu buyers pushed its price higher, but sellers eventually emerged, driving the price down subsequently.
The price surge corresponds with a 169% surge in trading volumes for the SHIB/USD pair on Coinbase, according to recent CoinGlass data.
Around the time of writing, Shiba Inu had retraced its gains in line with the broader market drop. Shiba Inu was recently trading at $0.00001238, up 1.51% in the last 24 hours, according to CoinMarketCap data.
What happened?
Shiba Inu saw a sharp drop on Friday, falling to a low of $0.00001199 after having traded at a high of $0.00001272 earlier.
On Saturday, Shiba Inu sharply rose from $0.000012, a level confirmed as support with multiple retests toward August's close. For instance, Shiba Inu saw a sharp surge on Aug. 22 from the $0.000012 support, reaching $0.0000135 consequently.
This trend repeated in today's session, which saw SHIB rise again from $0.00001203 to reach $0.00001303, posting a large green daily candlestick. This corresponds with increased activity in the derivatives market, with volumes reaching $200.16 million.
According to CoinGlass, the long short indicator for Shiba Inu is currently at 1.05, implying more buyers than sellers in the market, which might explain in a way the recent price move.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team