Shiba Inu Stagnation: What’s Causing Meme Coin’s Recent Sluggishness?
October 09 2023 - 6:00AM
NEWSBTC
Shiba Inu (SHIB) investors have been caught in a whirlwind of
uncertainty for the past month as the cryptocurrency’s price has
stubbornly clung to a narrow range between $0.0000075 and
$0.000007. This protracted period of stagnation has left traders
and enthusiasts alike scratching their heads, wondering when the
next significant move might occur. The current SHIB price, as
reported by CoinGecko, hovers at $0.00000715, representing a modest
1.4% decline over the last 24 hours. Over the span of seven days,
the meme coin has dipped by nearly 6%, indicating a gradual erosion
of value. This pattern of price fluctuations within such a
confined range underscores a lack of decisive action from both
buyers and sellers, painting a picture of market ambivalence.
Related Reading: XRP Journey To $0.55: Is A Breakthrough Imminent
In The Coming Days? Implications Of A Range-Bound Market For Shiba
Inu One can’t help but wonder about the implications of this
seemingly stuck range. Given the broader crypto market’s recent
slump, it wouldn’t be surprising to see SHIB test the lower echelon
of this range, potentially signaling an extension of its bearish
undertones. With the larger market sentiment in a state of flux,
SHIB’s fate remains intertwined with the broader crypto landscape.
SHIB market cap hitting $4.17 billion today. Chart: TradingView.com
The ongoing downtrend in SHIB’s price can be visually traced to the
formation of a falling wedge pattern on the weekly chart. This
pattern is characterized by two converging trendlines that serve as
dynamic resistances and supports. While such patterns can sometimes
hint at an impending bullish breakout, the prevailing market
sentiment suggests that investors should remain cautious and
prepared for any outcome. Declining Whale Activity: What Does It
Mean? Another noteworthy development in the SHIB ecosystem is the
decline in large network transactions. The number of significant
transactions on the SHIB network has dwindled to a mere 20, marking
one of the most inactive periods for the meme coin, especially
concerning the activity of its large holders. Several factors could
be contributing to this sudden drop in whale activity. Related
Reading: Bitcoin Price Ready For Blast-Off As Key Metrics Signal A
Bull Run: Top Analyst One of the potential reasons might be the
waning interest in highly volatile assets like SHIB, particularly
as Bitcoin’s dominance continues to rise within the crypto sphere.
As the flagship cryptocurrency asserts its dominance, many
investors appear to be realigning their portfolios, moving away
from riskier assets to more established ones. This shift in
investor sentiment could explain the reduction in significant SHIB
transactions as market participants seek more stability in their
cryptocurrency holdings. The formation of a falling wedge pattern
and the decline in large network transactions underscore the
challenges facing SHIB’s price trajectory. SHIB holders and
enthusiasts must remain vigilant and adaptable to navigate the
ever-changing tides of the digital asset market. (This site’s
content should not be construed as investment advice. Investing
involves risk. When you invest, your capital is subject to risk).
Featured image from Shutterstock
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