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Shiba Inu (SHIB) Went Back in Time: Details

Wed, 3/07/2024 – 8:50

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Shiba Inu’s volatility has hit values we might not be ready for. The last time the asset showed a similar performance was back in February, when the market was in a poor state in general. Unfortunately, the lack of volatility on Shiba Inu is a big problem, and here’s why. 

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Volatility has always been the main driver for SHIB. High volatility means more opportunities for traders to profit from price swings, attracting more participants and increasing liquidity.   

SHIBUSDT
SHIB/USDT Chart by TradingView

Shiba Inu went through a period of low volatility back in February, but it was quickly followed by a sharp increase. Increased market interest, social media hype and a general recovery on the cryptocurrency market all contributed to this spike. The price spike sent traders into a frenzy as it rose, pushing SHIB to yearly highs. 

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According to the current chart, SHIB is trading at about $0.00001693, which is a significant discount to its peak from earlier in the year at around $0.000045. With the 50 EMA at $0.00002200, the 100 EMA at $0.00002144 and the 200 EMA at $0.00001949, SHIB is below all of its major moving averages, according to the technical indicators. 

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As SHIB approaches the oversold area on RSI at 32, some buyers may be drawn in as they await a possible recovery. Low volatility is problematic because it makes meme coins less appealing for trading. Wider spreads may result from this, which would make it harder for traders to enter and exit positions profitably, which is an effect of poor liquidity.

Furthermore, whales lose interest in the asset in the absence of volatility. A few things have to line up for SHIB to see another spike in volatility. The market needs to show some renewed interest, perhaps Bitcoin’s return above $65,000 or growth of the Ethereum ecosystem, which Shiba Inu can benefit from.

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