SHIB Trading Volume Craters by $2.8 Billion as Price Sheds 10% — What’s Next

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As an analyst with over a decade of experience in the cryptocurrency market, I’ve seen my fair share of bull runs and bear markets. The recent drop in Shiba Inu (SHIB) volume and price is a pattern that I’ve noticed before, and it’s often a sign of a potential downturn.

So far this year, the price of Shiba Inu (SHIB) has skyrocketed by 150%, generating massive volumes as new investments poured into the cryptocurrency at certain points. However, over the period between December 10 and now, the trading volume of Shiba Inu coins has dropped a significant $2.80 billion.

Could this decrease in value be connected to the token’s 10% price fall over the past week? Is it possible that Shiba Inu (SHIB) could continue to see a downtrend in the future?

Interest in Shiba Inu Plummets from Last Week’s Highs

On December 10th, the trading volume of Shiba Inu coin amounted to approximately $3.58 billion. This figure represents the aggregate U.S. dollar value of all transactions involving this cryptocurrency during that specific period.

Generally speaking, a rise in trading activity (volume) tends to reflect growing investor attention towards an asset and enhanced market fluidity. Usually, this situation is considered positive for the asset’s price. Consequently, it was not unexpected that the spike in volume occurred alongside the meme coin’s recovery to $0.000030.

Currently, the SHIB token’s trading volume has decreased to approximately $708 million, implying reduced investor engagement with the token. A substantial drop in trading volume is often a bearish indicator. Consequently, if this trend persists, it’s possible that SHIB’s price may dip below $0.000027 in the near future.

Additionally, information from IntoTheBlock shows a substantial decrease in the duration that Shiba Inu coins are kept before any transaction or sale occurs, a metric they refer to as ‘Coins Holding Time’.

A rise in this measurement usually means investors are keeping their Shib tokens for the long term, which is generally a positive or bullish sign. However, a recent decrease suggests that some short-term SHIB holders might be unloading their tokens, potentially creating downward pressure on the token’s value if this trend continues.

SHIB Price Prediction: No Bullish Sign Yet

Over the course of approximately two months, from late September to December 9th, I observed that the Shiba Inu (SHIB) price followed an uptrend within an ascending channel. This bullish chart pattern is characterized by two rising trendlines, with one line indicating resistance at the top and another providing support at the bottom.

If a token breaks through both its upper and lower trendlines, it may signify an upward price movement. Nevertheless, Shiba Inu (SHIB) on its daily chart seems to have fallen below its lower trendline, suggesting that the previous bullish trend may no longer be valid and a potential correction could ensue.

Under these conditions, the value of the meme coin may plummet to approximately 0.000022 USD in a pessimistic outlook. If the trading volume for Shiba Inu decreases further, the price might dip as low as 0.000018 USD. But if buying activity picks up, it could potentially cause the price to rise to around 0.000033 USD.

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2024-12-16 20:40