Shiba Inu volatility has plummeted despite a relatively active cryptocurrency market. Considering the nature of Shiba Inu, the drop in volatility is not beneficial for the token. Investors could distance themselves from SHIB, which is often used as a risk exposure tool.
Shiba Inu volatility has plummeted despite a relatively active cryptocurrency market. Considering the nature of Shiba Inu, the drop in volatility is not beneficial for the token. Investors could distance themselves from SHIB, which is often used as a risk exposure tool.
Due to its high historical volatility, SHIB has attracted traders looking for quick profits. But now that things are stabilizing, these speculative investors might find the token less attractive. The absence of a notable price movement may indicate that larger players, also known as whales, could be preparing for a strong move.
Whales, or major cryptocurrency holders, have a major impact on market dynamics. The current period of low volatility may be a sign that these influential investors are increasing their SHIB holdings in anticipation of a significant price movement. Since large purchases are made in small increments to avoid significant price swings, accumulation phases are often characterized by periods of low volatility.
Regarding technical indicators:
Relative Strength Index: RSI is neither overbought nor oversold; remains neutral. This implies that without immediate pressure from overbought conditions, there may be room for a possible bullish or bearish move.
Gamza KhanzadaevMoving Averages: The 50-day and 100-day moving averages are where SHIB is currently consolidating. If whale activity increases, a major breakout may occur before this consolidation phase ends.
Trading Volume – When volatility decreases, there is also a noticeable decrease in trading volume. The observed drop may indicate that retail investors are holding onto their money, which could offer whales an ideal opportunity to enter the market without inducing significant price fluctuations.
Overall market sentiment remains cautiously optimistic, but concerns have been raised about SHIB’s future trajectory due to the token’s declining volatility.
