Shiba Inu (SHIB), a popular meme coin, has shown signs of recovery recently, capitalizing on a broader market upswing.
Bitcoin’s ascent towards $65,000 after a bearish period has propelled SHIB by almost 20% in the past week and had a similar effect on the broader market. However, for this uptrend to be sustainable, crucial metrics suggest the need for increased investor participation.
Market Rebound Fails to Ignite Enthusiasm
Despite the positive price movement, SHIB’s rally appears to lack momentum due to lukewarm investor interest. Data suggests a significant decrease in trading activity compared to previous Shiba Inu bull runs.
The coin’s 24-hour trading volume has averaged just over $262 million over the past week. This volume is meager compared to the $7 billion daily average observed during the March 2024 upswing when SHIB climbed almost 400% to $0.000045.
This lack of enthusiasm could be attributed to investor uncertainty regarding the longevity of the current market rally. The relatively low trading volume during a price increase indicates a wait-and-see approach from market participants.
This uncertainty might stem from the recent volatility, as SHIB recently dropped by almost 15%, but quickly recovered. A significant upswing in SHIB’s price would likely require a substantial increase in trading activity, fueled by renewed investor confidence.
The Keys to a Price Surge
Historically, substantial price increases for Shiba Inu have coincided with periods of heightened trading activity and rising volatility. During the March 2024 rally, for instance, a surge in daily active addresses to 42,334 on March 5 complemented a rise in volatility to 0.1794. These fueled the price spike that ultimately led SHIB to $0.000045.
While the recent volatility has reached a 3-month high of 0.0574, it hasn’t been accompanied by a corresponding increase in active addresses, which currently hover around 3,974. This divergence from the historical pattern suggests that the current upswing might lack the necessary ingredients for a sustained price increase.
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Resistance Levels and Potential Price Targets
SHIB is trading at $0.00001948, up 5.62% over the past week. The first significant hurdle is the $0.00002 resistance level, as data from IntoTheBlock indicates potential resistance between $0.00002 and $0.000025, where a sell wall of 97,160 addresses resides.
More substantial resistance awaits SHIB in the $0.000025 to $0.00003 and $0.00003 to $0.000036 ranges. Overcoming these resistance levels could send SHIB up by 129% to the next challenge zone at $0.000045, where a significant number of addresses hold a large number of tokens.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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