As of Nov. 8, Shiba Inu (CCC:SHIB-USD) was down 15.6% so far this month after moving up a great deal in October. The market capitalization for SHIB was down to $29.9 billion yesterday. That is slightly lower than Dogecoin (CCC:DOGE-USD), which had a market cap of $36.7 billion at the same time.
That makes Shiba Inu the eleventh-largest crypto according to CoinMarketCap, putting it just below Dogecoin. However, the crypto is now well off the highs it saw late in October.
For example, on Oct. 27, Shiba Inu peaked at $0.00008719. On Nov. 8, it was at $0.00005438 per share. So it is down 37.6% from its peak valuation and price.
But, of course, this might have been expected given how far and fast Shibu Inu has risen. For example, just a little over two months ago, it was at $0.000007201 as of Oct. 1. That means it has spiked 6.55 times in a very short time frame. Therefore, it is natural that investors are taking profits, pushing the crypto down for now.
Can Shibu Inu Stay This High?
It’s hard to say if Shiba Inu can sustain its height. On a positive note, it is riding the wave of meme coins — especially those associated with dog memes, such as Dogecoin. Floki Inu (CCC:FLOKI-USD) is another up-and-coming meme coin associated with Shibu Inu dogs that rose a great deal over the last month or so.
In fact, the supporters of that meme coin are embarking on a massive marketing campaign. They want to persuade the investing public — at least, those open to investing in cryptos — to follow Floki as the next Dogecoin success story.
Right now, subways in London and LA have billboard ads featuring the pup coin. Starting in the first week of December and continuing through Christmas, Floki ads are going to be on TV.
However, Shibu Inu does not have any kind of massive marketing campaign. That’s too bad since, as I have pointed out in previous articles, it does not seem to have the same uses case as Floki Inu. It is stuck as a means of currency transactions, just like Dogecoin.
SHIB’s Listing Issues
While it still isn’t available on Robinhood, you can buy SHIB on Coinbase Global’s exchange (NASDAQ:COIN). So, this whole controversy about Robinhood not listing Shibu is somewhat of a non-starter.
It is just as easy to open an account at Coinbase as it is at Robinhood. The only difference, it appears to me, is that Robinhood might let you buy the crypto if you have a margin account, whereas Coinbase does not have margin accounts.
Here is the bottom line. It is just as easy to buy SHIB as it is to buy Dogecoin. So there is no real difference in terms of their access to liquidity that can pump up their prices.
Where This Leaves Investors in Shiba Inu
It’s hard to say how far Shiba Inu could keep falling from here. It would not be uncommon for at least a 50% drop from its peak. That would leave further room for SHIB to fall from here.
For example, a 50% fall from $0.00008719 per token would put it at $0.000043595. From its price of $0.00005438 today, that is a further 20% drop.
But that being said, investors who owned the crypto at the beginning of October would still have a huge return if that happens.
So, you can see Shiba Inu is going to be highly volatile. It is likely the vast majority of its owners now have a profit, and a good many of them are trying to protect their gains by selling into the crypto’s weakness. Therefore, investors in SHIB should be very careful — at least, for the time being.
On the date of publication, Mark R. Hake held a long position in Floki Inu but did not own any other security mentioned in the article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.