Top cryptocurrencies are seeing sell-offs in Monday’s trading, and Shiba Inu (CRYPTO:SHIB) is participating in the pullback. The popular meme token was down roughly 4.5% over the previous 24-hour period as of 2 p.m. ET.
Among the top-15 largest cryptocurrencies, only Cardano was up over the last day of trading, while Bitcoin and Ethereum were down roughly 2% and 4%, respectively. Within the context of sell-off momentum impacting the broader crypto market, Shiba Inu’s pullback today is hardly outside the norm. Even with the token shedding some value today, SHIB is still up roughly 8.2% over the last week.
Shiba Inu stands as one of the most explosive investments in history and is still up more than 22,800,000% over the last year even after recent pullbacks. For those who bought in at the beginning of last year, the token’s incredible gains were enough to turn even relatively small investments into fortunes. However, SHIB has gotten hit hard as the broader cryptocurrency space has encountered bearish pressure in recent months, and its monster gains over the last year predispose the coin to big sell-offs when the crypto market has a down day.
The SHIB token is currently down roughly 66% from the lifetime high it hit at the end of October. After the last day of sell-offs, the coin now has a market capitalization of roughly $15.9 billion, and it ranks as the 14th largest cryptocurrency by valuation.
While it’s possible that the token may rebound from recent sell-offs and go on to reach new heights, the cryptocurrency’s unprecedented gains over the last year highlight the potential for an even steeper pullback from current pricing levels. What goes up doesn’t necessarily come down when it comes to investing, but SHIB’s massive run-up despite having little in the way of fundamental quality points to the token having a sky-high risk profile at current prices.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.