Shiba Inu (SHIB) cryptocurrency has recently exhibited a notable price-volume divergence, which could signal a significant shift for traders and investors. This divergence, which can be noticed on the current charts, is where price action forms new highs without the support of increasing volume, indicating a potential lack of belief behind the upward price movement. Historically, a price-volume divergence can herald a market correction as it indicates that the move is not supported by strong buying pressure.
Koinfinans.com As we reported, this separation came at a pivotal moment for SHIB. Despite a significant 19,000% increase in token burn volume, a first in recent months and which usually signals a reduction in supply that could lead to a price increase, Shiba Inu has failed to translate this into significant price performance. Moreover, SHIB is struggling to maintain momentum to surpass the 200-day Exponential Moving Average (EMA), a widely followed technical indicator that often acts as a dynamic resistance in bearish conditions and support in bullish markets. This EMA is a very important threshold for SHIB; Staying below could strengthen the downtrend and prevent potential rallies.
The juxtaposition of serious technical analysis with an enthusiastic community engaged in token burning, meme coinIt presents a complex landscape for future price movement. As the market generally prepares for possible corrections, SHIB’s ability to maintain current price levels may be tested. SHIB investors and traders should follow these developments closely. The price-to-volume divergence, together with the token burn increase and resistance encountered at the 200 EMA, presents a scenario where any bullish news could be quickly countered by a broader market decline or lack of follow-through on buying pressure.