Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
With trading activity drying up on major exchanges and volume levels falling dangerously close to zero, Shiba Inu is still under increasing pressure. Investor interest in the once-hyped meme token appears to be waning as fast as volatility itself, as evidenced by the declining participation.
Is Shiba Inu trapped?
SHIB has been trapped in a narrow consolidation range for weeks, failing to draw significant buying power or retail inflows. It is currently trading close to $0.0000102. Following a vicious October crash, the token is moving slowly along the short-term ascending trendline on the daily chart.
SHIB is still well below important resistance levels, especially the 100-day and 200-day moving averages at $0.0000113 and $0.0000128, respectively, despite slight attempts at recovery. The biggest warning sign, however, is the volume profile. Trading volume has been plunging since early October, falling more than 60% from its most recent peak.
Any asset, but particularly one as sentiment-driven as SHIB, is at risk from this decline, which indicates waning enthusiasm and an increasingly illiquid market environment. Reduced trading volume makes price movements less dependable, liquidity dwindles, and the token is more vulnerable to sudden brief spikes in volatility caused by tiny orders.
Shiba Inu's weak structure
In a technical sense, SHIB’s structure is still weak. There is no indication of a shift in momentum, and the RSI is at 45, indicating a neutral to bearish outlook. The last significant floor is the lower trendline support at $0.0000090, a break below it could quickly push the token down to $0.0000075 or lower, which are levels not seen since the middle of the year.
Essentially, the issue with Shiba Inu is not just the cost, but also declining participation. Without volume, there is no liquidity to support rallies, so even bullish setups have no value. The asset could become even more irrelevant if SHIB is unable to spark widespread accumulation or rekindle consumer interest.
The charts are clear now: Shiba Inu is bleeding activity rather than merely consolidating, and that could be far more harmful than a brief price decline.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team