Stagnant Token price leaves Shiba Inu SHIB Investors Frustrated

The Shiba Inu SHIB token has not seen much growth recently. This stagnant Token price leaves SHIB investors frustrated.

KEY TAKEAWAYS

Shiba Inu A meme currency has been in the news quite a lot lately. According to the SHIB burn rate tracking site, Shibburn, over $3.33 million SHIB tokens have burned. Which indicated a 148% increase in the burn rate. This means that these tokens were removed from circulation.

With this much increase in the burn rate, a person would expect the price to skyrocket. Instead, the price of SHIB remained stagnant a no significant increase was observed. Moreover, even the trading volume has decreased by 26% in the past 24-hrs which indicated the possible exhaustion of buyers.

The trading volume divergence suggests that the buyers present in the SHIB market were unable to initiate the price rally during that period. In other words, this shows a decline in the demand for SHIB or it’s becoming less volatile.

But should you invest in Shiba Inu?

The Moving Average Convergence/Divergence (MACD) is a technical analysis indicator that indicates the beginning of a bull cycle. The MACD of SHIB revealed a new bull cycle on March 16th.

However, despite this positive sign, the price of SHIB has remained stagnant as there hasn’t been much activity. Also, it has been trading within a narrow range of $0.000010 and $0.000011 for the past two weeks.

This lack of movement can most probably be attributed to the lack of liquidity in the SHIB market. This means there is not enough buying and selling activity to raise the price and sustain a rally.

Furthermore, momentum indicators, such as the Relative Strength Index (RSI) also show that the market has been in an arrest, with neither buyers nor sellers having a significant advantage.

The Directional Movement Index (DMI) is a technical analysis tool that determines the buyer and seller’s strength in the market. The DMI of SHIB shows that the sellers had more strength than the buyers in the market at the time of assessment.

The fact that the strength of sellers was higher than the buyers means that the sellers were controlling the market. Making it difficult for buyers to rally the price of SHIB, especially if there is a further withdrawal of liquidity from the market.

Nevertheless, the investors must be careful when buying SHIB, as the sellers’ strength can make it harder for the buyers to take control of the market.