Shiba Inu surged 48% to trade at $0.0000074 on Wednesday amid a speculative frenzy as cryptocurrencies showed some recovery.
The meme token has since retraced to the $0.0000094 level as traders take short-term profits with slowdown in major tokens.
SHIB has dropped 89% since its all-time high, with market capitalization currently at more than $5.5 billion.
The co-founder of risk management platform Apostro, Kate Kurbanova, says that the reasons behind Shiba Inu’s latest price pump are not related to any observable link.
Kurbanova adds that the retail investors have been accumulating the token in the hope that Elon Musk will make sentiments that can push the price higher.
The product manager at dHEDGE, Edson Ayllon, says that Recency bias suggests that bitcoin and Ethereum have bottomed and that the market may be ready for a short-term recovery.
Shiba Inu recently released a proposal to change how the ecosystem BONE tokens were used on the ShibaSwap protocol. Ripple co-founder Garlinghouse maintains that speculative tokens are not good for crypto.