The price of Shiba Inu (SHIB) has risen by 150% since the beginning of this year. New capital has flowed into cryptocurrencies, recording tens of billions of dollars in trading volume. However, from December 10 to the time of writing this, the trading volume of the Shiba Inu coin has decreased by $2.8 billion.
This decrease coincides with a 10% price drop of the token over the past 7 days. Will SHIB experience a long-term decline as a result?
SHIB interest plummets...highest last week
On December 10, SHIB's trading volume was $3.58 billion. The trading volume indicator tracks the total dollar value of all cryptocurrency transactions within a given time period.
Generally, an increase in trading volume indicates an increase in investor interest and market liquidity for an asset. In most cases, this is positive for the price. Therefore, it is not surprising that the surge in trading volume coincided with the meme coin's rebound to $0.000030.
However, at the time of writing, the trading volume has decreased to $708 million. This suggests that investor interaction with the SHIB token has decreased. A significant decrease in trading volume is generally a negative signal. Therefore, if this value continues to decline, the price of SHIB could fall below $0.000027 in the short term.
Additionally, data from IntoTheBlock shows that the coin holding time of SHIB has decreased significantly. This tracks how long a cryptocurrency is held without being traded or sold.
An increase in this metric indicates long-term holding and is generally a positive signal. Conversely, the recent decrease suggests that many short-term SHIB holders have started to sell their holdings. If this trend continues, it could put downward pressure on the token's value.
Shiba Inu price prediction: No bullish signals in sight
From the last week of September to December 9, SHIB's price traded within an ascending channel. An ascending channel is a positive chart pattern defined by two upward-sloping trend lines, indicating resistance at the top and support at the bottom.
If the token breaks above or below the trend lines, its value could increase. However, the daily chart of SHIB shows that it has fallen below the lower trend line. This indicates that the positive trend has been invalidated, and a correction may follow.
In this case, the value of the meme coin could drop to $0.000022. In a very negative scenario, if the trading volume of the Shiba Inu coin decreases again, the price could reach $0.000018. However, if buying pressure increases, the situation could change, and the price could rise to $0.000033.
