SHIB Skyrockets Back to ATH as Euphoria Reenters Crypto Markets

In recent news, nearly 95% of the cryptocurrency market has experienced an increase in price. Following Bitcoin&39s (BTC) recent but brief surge to beyond $55,000, most of the altcoins managed to undergo a similar spike, however, one cryptocurrency asset, in particular, managed to stand above the rest.

As of the time of this writing, Shiba Inu (SHIB) is now the 12th highest ranked cryptocurrency by market capitalization, with a current price of about $0.00003. This new price is indicative of a whopping 385% increase within the past week, with the token itself recording a new all-time high. The question that must be asked now though is why this has happened so quickly and whether Shiba Inu can maintain this sort of momentum going forward.

To the moon?

SHIB, with a market capitalization of approximately $17 billion, has now surpassed the likes of Uniswap (UNI), Chainlink (LINK), and even Litecoin (LTC). Shiba Inu was initially outlined as a sort of experiment in decentralized and unplanned community building as well as engagement. It was launched back in August of last year via a pseudonymous developer going by the alias &39Ryoshi&39. Although many argue the coin has "no real utility" it stands as an example of what the power of community can yield in the crypto ecosystem.

Since the beginning of the week, the token has seemingly managed to outclass all of its competitors, with a key cause being centered around Elon Musk and his unending love for dog-themed cryptocurrencies. The support from the Tesla CEO towards Dogecoin (DOGE) has been well-documented at this point. Another significant achievement was the revelation that the self-proclaimed &39Shiba Army&39 has now exceeded the 700,000 mark in terms of its members worldwide. Say what you will about the token, but this is an extremely impressive accomplishment.

Imminent retest and danger

Recent concerns have been fixated on what may end up becoming an opposing shift in both sentiment and price action as funding rates turned positive across various exchanges all over the globe. The fact that the funding rates were turning excessively positive seems to indicate that the market expects further upside movement. Under these conditions, a mass unwinding of positions could hasten and intensify a downward move, if such a situation occurs. In investing, it is always imperative not to blindly follow the crowd. In the wise words of Warren Buffet, "you must be fearful when others are greedy, and greedy when others are fearful.

This sentiment data mirrored the mood of investors, with the Cryptocurrency Fear & Greed Index reaching 76/100 on Saturday, indicating &lsquoextreme greed&rsquo. According to Rekt Capital, investors would hence do well to exercise caution as a retest could be imminent. This line of thinking was backed by long-term market participants already working on an exit strategy, as well as some historical data that showed a 50% sell-off during the last time a +90% pump had taken place within the cryptocurrency market.