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Year-to-date (YTD), Shiba Inu (SHIB) price has rallied by 150%, amassing billions in volume as fresh capital flowed into the cryptocurrency at some point. However, between December 10 and the time of this writing, the Shiba Inu coin volume has decreased by $2.80 billion.
This decrease coincides with the token’s 10% price drop in the last seven days. Will SHIB experience a prolonged decline as a result?
Interest in Shiba Inu Plummets from Last Week’s Highs
On December 10, the Shiba Inu coin volume was $3.58 billion. The trading volume metric tracks the total dollar value of all trades for a cryptocurrency within a given timeframe.
Typically, an increase in volume indicates growing investor interest in the asset and heightened market liquidity. In most cases, this is bullish for the price. Therefore, it was not surprising that the surge in volume coincided with the meme coin’s rebound to $0.000030.
However, as of this writing, the volume has dropped to $708 million, suggesting fewer investor interactions with the SHIB token. A significant drop in volume is generally a bearish sign. Therefore, if this value continues to slide, then SHIB’s price could be lower than $0.000027 in the short term.
Furthermore, data from IntoTheBlock reveals a significant drop in SHIB’s Coins Holding Time, which tracks how long a cryptocurrency is held without being transacted or sold.
An increase in this metric signals long-term holding, a typically bullish sign. Conversely, the recent decline indicates that many short-term SHIB holders have started selling off their holdings. If this trend persists, it could exert downward pressure on the token’s value.
SHIB Price Prediction: No Bullish Sign Yet
Between the last week of September and December 9, SHIB price traded within an ascending channel. An ascending channel is a bullish chart pattern defined by two upward-sloping trend lines, representing resistance at the top and support at the bottom.
When the token rises above the upper and lower trendlines, the value can increase. However, for SHIB, the daily chart shows that it has declined below the lower trendline. This indicates that the bullish trend has been invalidated, and correction might follow.
If this is the case, the meme coin’s value could decline to $0.000022. In a highly bearish scenario, with the Shiba Inu coin trading volume dropping again, the price could hit $0.000018. However, if buying pressure increases, that might change, and the price might climb to $0.000033.