Shiba Inu (SHIB) Hits Extreme Levels: What’s Happening?

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As a seasoned analyst with years of experience under my belt, I must admit, I’ve seen market trends come and go, but Shiba Inu’s current situation is giving me flashbacks to the dot-com bubble era. The low trading volume, declining large transaction metrics, and the absence of whale interest are all red flags that suggest SHIB may be in for a rough ride.

Currently experiencing tough times, Shiba Inu is seeing record lows in trading volume and large transactions. Despite SHIB‘s price performing relatively well lately, there seems to be a decrease in overall market enthusiasm, as demonstrated by the significant drop in on-chain activity, particularly trading volume.

Based on current trends, it seems the liquidity situation for Shiba Inu might weaken, potentially leading to a prolonged period of sideways trading. This type of movement often suggests that investors are pulling out from assets like SHIB. The data shows a decrease in the frequency of large transactions. Over the past day, only 98 significant transactions involving SHIB were recorded, with September 4 being the highest volume in the last seven days.

Shiba Inu (SHIB) Hits Extreme Levels: What's Happening?

Compared to Shiba Inu‘s past price peaks, especially during its active trading periods in early 2022 and 2021, the current prices are significantly lower. The volume patterns suggest that the large-scale investors who used to influence Shiba Inu’s market volatility are no longer as active. As per the price chart, Shiba Inu seems stuck below a crucial moving average, which might act as a barrier and prevent further upward movement.

Despite a somewhat steady price point for the token at approximately $0.00001314, the overall situation remains volatile due to low trading volume and insufficient liquidity. This volatility could be contributing to the lack of significant market momentum, as indicated by Shiba Inu’s Relative Strength Index (RSI) being slightly oversold, with a reading around 42.

If new buying interest is not expressed, SHIB runs the risk of becoming stuck in a narrow trading range and losing momentum. It may be difficult for SHIB to break out of this rangebound pattern if it encounters declining volume and liquidity. 

Traders often move their funds to places with more promising opportunities when market volatility is lacking. Unfortunately, this trend worsens Shiba Inu’s liquidity problem because there’s a lack of large-scale transactions, or whale activity, suggesting that major institutional investors might be withdrawing.

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2024-09-09 11:26