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With trading volume and large transaction metrics at all-time lows, Shiba Inu is going through a difficult time. Even though SHIB's price has been doing fairly well these past few weeks, there appears to be less market interest, as evidenced by the notable decline in on-chain activity, especially trading volume.
At this rate, the liquidity position of Shiba Inu may deteriorate, which could result in prolonged rangebound trading, which usually indicates withdrawals from an asset such as SHIB. The data presented indicates that there has been a slowdown in the volume of large transactions. SHIB recorded 98 large transactions in the past 24 hours, with Sept. 4 marking the seven-day high.
This is much lower than SHIB's previous speaks, particularly in light of its active trading periods in early 2022 and 2021. The volume trends show that the type of whale interest that once drove SHIB's volatility is no longer present. SHIB appears to be trapped below its important moving average, which could act as resistance, according to the price chart.
Arman ShirinyanAlthough there is some stability in the token's price around $0.00001314, the situation is unstable due to low volume and liquidity. A lack of momentum may be caused by the fact that SHIB's Relative Strength Index (RSI) is likewise slightly oversold, hovering around the 42 mark.
If new buying interest is not expressed, SHIB runs the risk of becoming stuck in a narrow trading range and losing momentum. It may be difficult for SHIB to break out of this rangebound pattern if it encounters declining volume and liquidity.
Traders who seek out better opportunities elsewhere frequently push their capital away in response to nonexistent volatility on the market. SHIB's liquidity issue is aggravated by the absence of whale activity, which implies that institutional or large-scale investors are pulling out.
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.
Godfrey Benjamin
Vladislav Sopov
Dan Burgin
Alex Dovbnya