Prior to the sudden reversal, Shiba Inu dropped to the local trendline support and moved off of it for the last few days, worrying investors as the trading volume suggested that another spike in selling pressure would put SHIB at risk of a strong nosedive and greater losses.
Thankfully, the most recent news around the Shiba Inu Metaverse pushed some inflows to the memetoken. Reportedly, a former Netflix entertainer has joined the Shiba Inu Metaverse team. The news could have been the main reason behind the rally we are seeing on Shiba Inu now.
Market and technical overview
A positive news background is always welcome for volatile assets like Shiba Inu, but it is most likely that the token's price performance is tied to market-related events rather than news about the Shib Metaverse.
In the last 24 hours, the most volatile cryptocurrencies on the market saw significant inflows and short-term rallies that put them at the top of the profitability leaderboard. Shiba Inu was no exception.
The most likely reason behind the pump is the expected reaction of the European Central Bank to the rising inflation and a relatively calm speech delivered by the Fed's Powell. The market was reasonably oversold in the last few weeks, which is why the move we are seeing today could be nothing but bulls' answer to the most recent movements we saw on the crypto market previously.
At press time, Shiba Inu is changing hands at $0.000013.