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Shiba Inu's volatility has plummeted despite a relatively active cryptocurrency market. Considering the nature of Shiba Inu, the drop in volatility is not beneficial for the token. Investors might distance themselves from SHIB, which is often used as a tool for risk exposure.
Due to its historical high volatility, SHIB has drawn traders seeking rapid profits. But now that things are stabilizing, these speculative investors might find the token less attractive. The absence of notable price movement may indicate that larger players — also known as whales — could be setting themselves up for a strong move.
Whales, or substantial cryptocurrency holders, have a major impact on market dynamics. The current period of low volatility may be a sign that these influential investors are building up their SHIB holdings in anticipation of a significant price move. Because large purchases are made in small increments to avoid significant price shifts, accumulation phases are frequently characterized by periods of low volatility.
As for technical indicators:
Relative Strength Index: The RSI is not overbought nor oversold; it is still neutral. This implies that, without immediate pressure from overbought conditions, there may be room for a possible upward or downward move.
Gamza KhanzadaevMoving averages: The 50-day and 100-day moving averages are where SHIB is currently consolidating. If whale activity increases, a major breakout may occur before this consolidation phase ends.
Trade volume: When volatility declines, there is a discernible decrease in trading volume as well. The observed decline may indicate that retail investors are holding onto their money, which could present whales with an ideal chance to enter the market without inducing significant fluctuations in prices.
The market's general sentiment is still cautiously optimistic, but concerns have been raised about SHIB's future trajectory due to the token's declining volatility.
Yuri Molchan
