Shiba Inu Records A Decline In Volatility
The broader crypto market appears to be relatively active, yet the Shiba Inu token has seen a decline in its volatility. This fall in volatility is not good for the meme coin, given its nature.
Investors use the SHIB token for risk exposure and this decline in volatility might prompt them to distance themselves from the meme token.
The impact
Traders looking for high profits have often been drawn to the Shiba Inu token due to its high volatility. However, speculative investors may no longer find the token attractive due to a stabilizing market.
The fact that there are no major price movements in the meme token indicates that large players, commonly called whales, might be gearing up for a strong move.
Whales play a crucial role in the overall market dynamics, given that they hold a large number of tokens. Therefore, they are undoubtedly playing a key role in Shiba Inu’s low volatility.
The meme coin may be experiencing low volatility because these influential investors are likely adding to their SHIB holdings in anticipation of a major price move.
Large purchases are usually made in small increments to ensure there are no significant changes in price.
Periods of low volatility are common during the accumulation periods of whales.
Technical indicators
A look at the technical indicators of the Shiba Inu token shows that the Relative Strength Index (RSI) is neither oversold nor overbought territory.
It is currently neutral, which means that there could be a downward or upward move if there is no immediate pressure due to overbought conditions.
The meme token is currently consolidating close to its 50-day and 100-day moving averages (MAs).
If there is an increase in whale activity, there might be a breakout in the price before the end of the consolidation period.
When there is a decline in volatility, the trading volume also records a notable decline and this applies to SHIB as well.
This particular decline could show that retail investors have decided to hold onto their money.
This could provide an excellent opportunity to whales for entering the market without worrying about significant fluctuations in price.
The general sentiment in the market remains cautiously optimistic. However, the future trajectory of the SHIB token has become a point of concern due to the fall in volatility.
Telegram warning
The number of scams on Telegram is on the rise due to which the entire Shiba Inu community has been told to exercise caution.
Fraudsters have taken to Telegram to impersonate official Shiba Inu ecosystem X accounts to defraud and deceive users.
Scammers have created fake accounts on Telegram mimicking official Shiba Inu X handles to take advantage of the popularity of the Shiba Inu ecosystem.
The names of these fraudulent accounts are identical to those of the official X accounts. They are created to mislead users to gain their trust and eventually steal their tokens.
Therefore, a safety warning was issued to the entire SHIB community about the fake accounts on Telegram.
