Shiba Inu’s Sharp Price Dip and Swift Recovery on Coinbase
The value of Shiba Inu (SHIB), a cryptocurrency known for its fluctuating prices, recently took a nosedive on the US-based Coinbase exchange, declining by 50% in a startling sell-off before making an abrupt comeback. Such price volatility serves as a stark reminder of the liquidity and market capacity challenges faced by the digital currency industry.
SHIB Faces Astonishing Price Drop
During early trading hours, SHIB’s value plummeted by half on Coinbase, tumbling from $0.000044 to $0.000022. This steep decline took place against the backdrop of a general downturn in the crypto market that also impacted heavyweights like Bitcoin (BTC) and several prominent altcoins.
The sudden dip in SHIB’s price is typically a result of a large sell order that surpasses the exchange’s existing liquidity. However, even with this dramatic decrease, SHIB’s market depth on Coinbase remained substantial, with morning figures showing $1.2 million, signifying robust trading activity on the platform.
Additionally, SHIB’s spot volume on Coinbase reached well over $1.7 billion within a 24-hour period, demonstrating a highly active market presence.
SHIB Bounces Back with Vigor
Despite the initial shock, SHIB’s valuation swiftly rebounded, posting a 45% surge over the subsequent 24 hours. CoinGecko’s data reveals that this increase is part of a broader trend in the memecoin sector, which experienced a surge in excess of 100% the previous week.
The specific cause of SHIB’s drastic fluctuation on Coinbase is not entirely clear, yet it exemplifies the unpredictable nature of trading cryptocurrencies and the impact of liquidity on price stability. This event emphasizes the need for understanding market depth dynamics and the factors driving prices in the crypto sphere.
