Shiba Inu (SHIB), the ubiquitous meme coin, has been on the rise lately, mirroring a broader crypto market upswing. Bitcoin’s recent surge towards $65,000 has propelled SHIB by nearly 20% in a week, but can this momentum be sustained?
While the price increase is positive, some metrics suggest a lukewarm investor response. Trading volume, a key indicator of market activity, has averaged just over $262 million over the past week. This pales in comparison to the $7 billion daily average witnessed during SHIB’s explosive rally in March 2024, when the price rocketed almost 400% to $0.000045.
This lack of enthusiasm could be due to investor uncertainty about the current market rally’s longevity. The relatively low trading volume during a price increase suggests a wait-and-see approach. Recent volatility, with SHIB experiencing a quick 15% drop followed by a recovery, may also be contributing to this uncertainty. A significant price upswing for SHIB would likely require a substantial increase in trading activity, fueled by renewed investor confidence.
Historically, substantial price increases for SHIB have coincided with periods of heightened trading activity and rising volatility. The March 2024 rally, for instance, saw a surge in daily active addresses to 42,334 alongside increased volatility. These factors fueled the price spike that ultimately led SHIB to $0.000045.
While recent volatility has reached a 3-month high, it hasn’t been accompanied by a corresponding increase in active addresses, which currently hover around 3,974. This divergence from the historical pattern suggests that the current upswing might lack the necessary ingredients for a sustained price increase.
Also Read: Binance Teases Surprise For Shiba Inu Army: 8% Bone Rally Amid Speculation
So, where does SHIB go from here? The coin is currently trading at $0.00001948, facing its first hurdle at the $0.00002 resistance level. Data suggests potential resistance between $0.00002 and $0.000025, where a significant number of investors may be looking to sell. Overcoming these hurdles could send SHIB up by 129% to the next challenge zone at $0.000045.
Only time will tell if SHIB can recapture its March highs, but overcoming investor apathy and reigniting trading activity will be crucial for a sustained rally.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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