Are you keeping an eye on Shiba Inu and its trading volume? The latest data reveals some interesting trends that could indicate a potential bearish reversal in the near future.
On July 7, Shiba Inu trading volume peaked at $36.46 million. However, as the price continued to rise, trading volume saw a significant drop, reaching only $26.3 million on July 8. This 27% decline in trading activity in just two days is certainly worth noting.
Declining trading volume during a price recovery phase can be seen as a bearish signal for a couple of reasons. Firstly, it may point to a lack of confidence in the sustainability of the price increase, as fewer traders are participating in the market. This can lead to weaker buying pressure, making it easier for the price to reverse and fall.
Secondly, a drop in trading volume while prices are rising could indicate that the recovery is driven by a small group of buyers rather than broad market support. This scenario increases the risk of a bull trap, where prices briefly rise but lack the momentum to maintain the uptrend, resulting in a sharp decline.
As of July 9, Shiba Inu price has climbed back to $0.000017, marking a 30% rebound from recent lows. However, the hesitation among SHIB traders, highlighted by the 28% decrease in trading volume, suggests a cautious sentiment and the potential for another bearish reversal towards the $0.000015 level in the coming days.
Technical indicators on the Shiba Inu daily timeframe chart further support this bearish forecast. The Bollinger Bands show that the price is still below the middle band, indicating downward pressure. Additionally, the struggle to break through the 23.6% Fibonacci retracement level at $0.000018748 signals a significant resistance point.
Stay tuned for more updates on Shiba Inu price movements and trading volume trends as we keep a close watch on potential market developments. Remember, informed trading decisions are key to success in the ever-changing world of digital assets.