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Shiba Inu (SHIB) has taken a step back after a strong few weeks, but there is no sign of the token "adding a zero" - at least, according to one of the most reliable volatility indicators.
SHIB is now trading near $0.00001353, almost exactly at its 20-day simple moving average, which also happens to be the middle Bollinger Band. At the moment, it is at $0.00001358, and it is usually a good place to get back in when things are going up, but it is also a sign to watch out for when people's moods start to change.
The lower Bollinger Band is still much higher than the psychological danger zone, though, with support at around $0.00001107 - which is basically putting a floor under the current price action for now.
The token had already surged by almost 60% from its low of $0.0000097 in July to just under $0.000016, before hitting a wall around the upper Bollinger Band.
That rally, which was backed by a rapid increase in volume - peaking at 2.47 trillion SHIB traded in a single session - has now reversed over just two red daily candles. The volume during the pullback has dropped to 1.57 trillion, which suggests that selling may be slowing down.
Right now, the big question is whether the SHIB price can hold onto its midline or end up closing below it for a few days in a row. If it bounces back here, it might test the $0.000015 zone again, but if it does not, it will probably drag the price back to the lower band and make investors worry about losing another decimal.
The Bollinger setup suggests that the odds of a fresh zero being added are still pretty slim. But if $0.000011 breaks, the story might change quickly. SHIB holders will not want to miss how this plays out.
Vladislav Sopov
U.Today Editorial Team