Shiba Inu (SHIB) is trading upbeat after the sharp spike in the previous session which catapulted it 50% higher and caused it to rise to the 11th position among cryptocurrencies by market capitalization. At the time of writing, SHIB/USDT is trading at around $0.000040.

The second most popular memecoin saw quite a high level of trading activity over the weekend, making the most of the bullish sentiment in the crypto sector at large. This caused it break past the key $0.000030 level and head to a new ATH of $0.0000455 on Sunday.

What is Causing the Surge in SHIB?

Although the self-confessed Dogecoin killer has since eased slightly lower, it holds on to most of its gains, indicating a sustained sense of optimism among its investors and HODL-ers at the moment. The SHIB token went on to become the 11th largest crypto by market cap on Sunday; however, it has since slipped to the 13th ranking at present.

So far this month, Shiba Inu has registered nearly 500% gains, making it one of the most profitable cryptocurrencies in October. SHIB has been climbing higher over the past few weeks supported by increased buying sprees among whales or large holders of the token, indicating a potential for further upside.

One of the biggest reasons for the renewed interest in Shiba Inu is the bullish sentiment among investors towards Bitcoin lately, helping it soar to a record high a few sessions ago. Crypto traders have been cheering the news of US’s first official Bitcoin-based ETF launching even as they gear up for more such products to hit the market soon, an indicator of acceptance of the asset class among regulators.

Shiba Inu and Elon Musk: It’s Complicated?

The SHIB token received an additional boost after comments from Tesla CEO Elon Musk, possibly suggesting his interest in taking the coin to higher highs, possibly even ‘to the moon’. Shiba Inu has been registering strong gains over the past week as a result of Musk’s tweets, which the token’s community has taken as a sign that the entrepreneur is switching his attention from Dogecoin to Shiba Inu. The bullish sentiment towards the memecoin remains strong at the moment, despite Musk clarifying that he does not have any holdings in the crypto coin at the moment.

SHIB/USDT Technical Analysis

On the H4 price chart of SHIB/USDT, moving averages as well as leading technical indicators MACD and momentum are exhibiting a strong bullish bias. Shiba Inu’s price is holding well above the pivot point at $0.000035 at the moment.

Looking ahead, continued buying pressure among investors can take SHIB higher until the first resistance which comes up at $0.000045. A break above this level can open the door to new ATHs and even take it past the $0.000050 as long as buyers remain dominant.