Why Is Shiba Inu (SHIB) Price Up 7% Today?

The Shiba Inu (SHIB) price is seeing positive headwinds on Thursday morning after a gut-wrenching few days for investors. So far, the meme coin’s price has risen by more than 7% in 24 hours to reclaim the $0.00001 target once more. As the rise looks poised to continue, let’s take a look at what is driving it and why the recovery could go on.

Shiba Inu Price Follows Positive Crypto Market Sentiment

The Shiba Inu price is benefitting as a result of the positive crypto market sentiment that has returned over the last day. Mostly, prices in the financial market have seen an upside following the Federal Open Market Committee (FOMC) announcement on Wednesday.

According to the FOMC minutes, interest rates remained consistent, coming back between 5.25% and 5.5% for the same time period. This comes after the Fed announced that inflation rates have been on the decline and the economy has not seen any negative shakeups as well.

This announcement was well-received by big players in the industry such as BlackRock. Jeffrey Rosenberg, BlackRock’s systemic multi-strategy fund portfolio manager, called the FOMC minutes a green light for investors.

Notably, the FOMC minutes stated that interest rate cuts are expected in the next year, going from around 5.1% to 4.6%. Following this, the price of Bitcoin rallied, crossing $42,000 once more, and the price of altcoins such as Shiba Inu followed suit.

SHIB price at $0.00001 | Source: SHIBUSD on Tradingview.com

Can SHIB Recovery continue?

The crypto market is still enjoying the spoils of the FOMC minutes, despite slight corrections. Shiba Inu, for one, is seeing an upside of around 7.5% in the last day, bringing its price above the $0.00001 mark. This recovery has also put the crypto in the green on the 7-day chat, which now shows gains of 3.03%.

SHIB’s daily trading volume is, however, down 8% around this same time. This could signal a decline in interest but it could also mean there are fewer investors selling especially given that the price is on an upward trajectory. Right now, with no major development in the Shiba Inu ecosystem driving the price, a continuation of the Bitcoin rally could be the best thing for the SHIB price.

One factor that could continue to drive the price upward though is that large SHIB addresses are choosing to take their tokens off of centralized exchanges. As Bitcoinist reported, these addresses withdrew around 0.51% of the coin’s circulating supply off exchanges.

Presently, Shiba Inu bulls are still holding steady as the price continues to trade in a tight range. If Bitcoin moves above $45,000, then the meme coin could see a return to $0.000012.

Featured image from Watcher Guru, chart from Tradingview.com