Shiba Inu Rally Built on Fragile Liquidity
Shiba Inu's price surged nearly 40% in just two trading sessions, adding around $1 billion to its market capitalization and reclaiming the 25th spot on CoinMarketCap. However, this rally is built on a narrow technical foundation, as it seems to be driven by the absence of sell orders rather than genuine demand.
A lack of liquidity in order books allowed any purchase to push the price upward, rather than being absorbed by new buyers. Gross inflows of around 2.4 trillion SHIB into exchanges were mostly offset by outflows of 2.376 trillion tokens, indicating that there was little net selling pressure.
The Shiba Inu community is also tracking the silence of project ambassador Shytoshi Kusama, who has not posted on X since May 13th. His past periods of silence have often preceded significant announcements.