2024-04-07 18:03:32
- Shiba Inu has experienced an increase in market volatility.
- Despite the risk of price declines, coin accumulation persists.
Leader meme coin Shiba Inu [SHIB] may extend its month-long decline as volatility markers assessed on a weekly chart show that the coin market remains significantly volatile.
Exchanging hands at $0.00003 at press time, SHIB price has declined 30% in the past month, according to CoinMarketCap’s data.
Does everything bark and no bite?
Readings of the coin’s volatility markers observed on a weekly chart showed that SHIB remains prone to further price decline as volatility persists in the market.
For example, the gap between the upper and lower bands of the currency’s Bollinger Bands indicator has widened.
This indicator measures market volatility and identifies possible price trends. When the gap between its upper and lower bands widens, it suggests an increase in the price volatility of the asset in question.
Furthermore, if this gap widens as the asset’s price trends in a particular direction, it indicates that the trend is strengthening.
In the case of SHIB, its persistent price decline, combined with the widening gap of its Bollinger Bands, suggests that the bearish trend is strong.
Confirming the volatile nature of the SHIB market, its average true range was in an uptrend at the time of this publication.
This metric measures market volatility by calculating the average range between high and low prices over a specific number of periods. When it increases, it suggests that price swings are becoming more significant.
Likewise, SHIB’s Chaikin volatility indicator has remained relatively stable since late March. This indicator measures the difference between the maximum and minimum prices of an asset during a specific period.
Generally, when the Chaikin Volatility Indicator recovers to return higher values, it indicates significant potential price swings.
Source: SHIB/TetherUS on TradingView
SHIB soldiers remain resilient
Although SHIB remains at risk of a further decline, accumulation persists among market participants. Key currency momentum indicators also observed on a weekly chart confirmed this.
File Shiba Inu [SHIB] Price prediction 2024-25
At the time of publication, its Relative Strength Index (RSI) was 61.54 and its Money Flow Index (MFI) was 75.57.
Source: SHIB/TetherUS on TradingView
These indicators showed that buying activity persisted despite the possibility of a further decline in SHIB value.
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This is an automatic translation of our English version.
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