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With hardly any discernible movement in price action or on-chain, the Shiba Inu market has entered a period of stagnation. Although SHIB has stabilized following a sharp decline, it still seems to be stuck in a stalemate, with neither bulls nor bears willing to take charge. SHIB is trading close to $0.0000109 on the price chart, just above a crucial local support level at $0.0000095.
Shiba Inu market paralized?
This region has repeatedly held, indicating that a bottom formation may be developing. Volume and volatility are still very low, though. A lack of momentum on both sides is indicated by the RSI indicator's flat position in the 37-40 range. Although this configuration may result in a recovery if buying pressure resurfaces, the present lack of activity reduces the likelihood of such a move in the near future.
The on-chain image supports this paralysis of the market. Exchange metrics like Netflow Inflow and Outflow have hardly changed over the past day, according to data from CryptoQuant. Since the Exchange Reserve has only slightly increased by +0.13%, it is clear that coins are not moving to or from wallets but are instead just sitting idly on exchanges.
Neutrality in place
In the meantime, Netflow (-0.34%) is still essentially neutral, which indicates that no substantial buying or selling is occurring. In short, investors are not participating. There are not any significant whale accumulations, transfers or liquidations. The absence of activity indicates that market players are either awaiting technical confirmation of a breakout or a macro catalyst.
Despite probably bottoming out close to current levels, SHIB is not receiving enough institutional or speculative attention to spark a recovery. Shiba Inu runs the risk of moving sideways in this low-liquidity environment unless inflows and trading volume increase. Whether a breakout or a breakdown occurs next will probably depend on a sharp resurgence of volatility in a market that feels stagnant right now.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team