Despite a very busy cryptocurrency market, Shiba Inu’s volatility has drastically decreased. Given the characteristics of Shiba Inus, the coin does not benefit from the decline in volatility. Investors may pull away from SHIB, a technique that’s frequently used to manage risk.
SHIB’s historically high volatility has attracted traders looking to make quick money. However, if things start to stabilise, these speculative investors can become less interested in the token. The lack of significant price movement might be a sign that bigger investors, or “whales,” are getting ready for a big move.
Large cryptocurrency holdings, or “whales,” have a significant influence on market dynamics. These powerful investors could be increasing their SHIB holdings in expectation of a big price rise, given the present period of low volatility. Periods of minimal volatility are often characteristics of accumulation stages, when major purchases are made in modest increments to prevent dramatic price movements.
Concerning technical indicators:
Relative Strength Index: The RSI remains neutral and is neither overbought nor oversold. This suggests that there could be space for a potential move either higher or downward in the absence of direct pressure from overbought circumstances.
Moving averages: SHIB is now consolidating around the 50-day and 100-day moving averages. A significant breakout might happen before this consolidation phase is over if whale activity rises.
Trade volume: There is a noticeable drop in trading volume along with a fall in volatility. Whales may have an excellent opportunity to enter the market without causing large price swings, as the observed fall suggests that normal investors are hanging onto their money.
Although the market is still generally cautiously hopeful, the reducing volatility of SHIB has caused some people to worry about the token’s future direction.
