Shiba Inu Its price dropped to $0.000020 today, showing a 26% decrease in the last 10 days. Additionally, trading volume trends point to further declines in the future.
Shiba Inu Breaks a Record of 25% Free Fall in 10 Days
meme coin, has made media headlines for various bullish events in April, from fundraising $12 million for critical network development to burning 1.7 billion tokens during the month. But interestingly, SHIB’s short-term price action failed to benefit positively from these events.
After the speculation created by the ecosystem team’s $12 million fundraising last month, the Shiba Inu price has failed to maintain its upward trend. SHIB price has free-falled by 26.74% since April 23. For this reason, it dropped to $0.000020 on May 1.
Shiba Inu Trading Volume Increases by $127 Million Amid 16% Price Drop
At the time of writing the news altcoinis trading at $0.000023 per token, showing a slight recovery of 2% on the daily timeframe. However, vital market trends suggest that the bulls are unlikely to continue the upward trajectory in the near term.
Shiba Inu’s trading volume trends shown in the Santiment chart below track the dollar value of all SHIB transactions executed on a given day.
On April 28, SHIB recorded a trading volume of $44.1 million, a 70-day low since February 25. However, on a more worrying note, recent data shows SHIB trading volume reached $171.2 million on May 1. This represents an increase of $127 million from the 70-day low recorded last week.
Typically, an increase in trading volume is often attributed to increased demand and market participation. But in rare cases, when an increase in trading volume coincides with a rapid price decline, as seen in the SHIB chart above, strategic traders consider this a bearish signal for two main reasons.
First, it suggests that increased trading activity may be driven by panic selling or profit-taking rather than genuine buying interest. Secondly, a negative divergence between trading volume and price movement could indicate a lack of sustainable support for the asset’s price, potentially leading to further downward pressure in the short term.
SHIB Price Projection: $0.000020 Support Now At Risk
Shiba Inu’s 26% price drop over the last 10 days coincided with a $127 million increase in trading volume. This rare market signal suggests that SHIB price may be at risk of losing the critical $0.000020 support in the near term.
The Bollinger bands indicator further confirms this bearish Shiba Inu price prediction. This indicator shows that despite the slight daily recovery of 1.34% on May 2, SHIB is still trading below its 20-day SMA price and the bears are still firmly in control of the short-term market trend.
As reported by Koinfinans.com, within the current dynamics, the bears could make a major price decline towards $0.000015 if SHIB fails to hold the key support zone of $0.0000204 as shown in the lower bound Bollinger band.
On the other hand, in case of a positive swing in market momentum, Shiba Inu bulls should scale the $0.000028 resistance level to regain the driving seat.
Source : The Crypto Basic