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Shiba Inu (SHIB) Trading Volume Hits Rock Bottom, What's Next?

Tue, 04/25/2023 - 17:00
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Arman Shirinyan
Shiba Inu is currently in the crisis, despite the rally of memecoins on the market
Shiba Inu (SHIB) Trading Volume Hits Rock Bottom, What's Next?
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Shiba Inu (SHIB) is currently experiencing a significant decline in trading volume, reaching a four-month low after failing to gain momentum from a local support level it reached several days ago. The stagnating trading activity could be attributed to the overall lack of action in the cryptocurrency market, raising concerns about the token's potential to resume its uptrend in the near future.

The meme-inspired cryptocurrency landed on a local support level a few days ago, but it has struggled to make headway since then. The lack of buying interest has caused the trading volume to plummet to its lowest point in months, signaling a potential loss of confidence among investors. This development could be concerning for SHIB support who may have anticipated a rally along with other meme tokens.

Shiba Inu chart
Source: TradingView

The cryptocurrency market has also been experiencing a period of inactivity, which may be contributing to the lack of momentum for Shiba Inu. With no significant catalysts driving the market, many cryptocurrencies are struggling to find a clear direction. This uncertainty might be preventing new investors from entering the market and existing holders from increasing their positions, further exacerbating the issue.

Cardano finds another foundation

Cardano (ADA) is currently facing a new support level, which might offer a foundation for a potential reversal of the asset's recent downtrend. The simple 50-day moving average (SMA) is emerging as a key support, despite being located significantly below the exponential moving average (EMA) of the same period. However, ADA's recent price action reveals that it has lost three major support levels, prompting investors to question the token's short-term prospects.

At the time of writing, Cardano is trading at $0.37, having experienced a steady decline over the past month. During this time, ADA has breached the 50-day and 200-day moving averages, as well as the lower border of a broadening price range that has guided the asset's price trajectory. These losses have raised concerns among investors, who are now seeking signs of a potential reversal.

The simple 50-day moving average, which has emerged as a new support level for ADA, could serve as a turning point for the asset. If the token manages to hold above this support, it could signal a possible reversal, potentially attracting new buyers and inspiring renewed confidence among existing holders. However, this scenario remains uncertain, given the overall bearish sentiment in the market.

Solana trying to catch a break

Solana (SOL) appears to be on the cusp of exiting a choppy market, with its ecosystem's network activity showing signs of recovery. This positive development could potentially lead to a broader reversal in the token's value, as Solana navigates a challenging period following the FTX implosion. With a broader market recovery on the horizon, SOL may be well-positioned to regain lost ground and resume its previous uptrend.

Solana (SOL) Q1 Performance Unveiled, Here Are 3 Key Metrics That Prove SOL's Superiority

Over recent months, Solana has faced tough times due to the impact of the FTX implosion, which caused the token's value to plummet. After a period of substantial losses, SOL managed to recoup some of its value, entering a choppy market characterized by unpredictable price fluctuations. 

While this phase has brought uncertainty for investors, there are now indications that Solana's network activity is on the rise, potentially signaling a return to a more stable market environment.

As the network activity of Solana's ecosystem gradually recovers, the token stands to benefit from the broader market rebound that appears to be taking shape. This recovery could drive SOL's value higher, enabling it to regain lost ground and resume its previous uptrend. 

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.