Shiba Inu [SHIB] displayed an upward trend recently, although its trading volume declined by 4.4% in the 24 hours leading up to the current moment. This drop was accompanied by a decrease in activity among SHIB whales, indicating a decrease in demand from large holders.
The memecoin’s bulls successfully recovered from a pullback in early October that tested the fair value gap. Trading volume has consistently exceeded the averages seen in August and September. However, the psychological resistance zone at $0.00002 has been a significant challenge for the bulls.
Since June, this area has posed a strong barrier. While the Relative Strength Index (RSI) and market structure reflect bullish dominance, the On-Balance Volume (OBV) is less convincing. The lack of demand in October may hinder the breakthrough of the bearish order block overhead.
Diminishing Volatility Could Benefit Investors
After a notable surge in late September, the 1-week volatility metric has since calmed down. This reduction in volatility suggests a period of consolidation, reminiscent of the first half of September before the major rally.
Simultaneously, the 90-day Shiba Inu MVRV ratio has been increasing in line with the price, implying a higher likelihood of profit-taking and selling pressure. However, this trend does not pose a threat to a potential breakout.
Meanwhile, the Mean Dollar Invested Age continued its upward trajectory at the current moment, indicating stagnant investments and aging coins remaining in wallets.
When this metric eventually starts to decline, it could signify reduced stagnation and signal the beginning of a strong uptrend. Similar patterns were observed earlier in the year in February and March and might repeat.
Accumulation of Short Liquidations Above SHIB’s Current Price
An analysis of the 3-month liquidation heatmap revealed the $0.0197-$0.0202 range (equivalent to 1000SHIB). This particular zone could act as a key area for Shiba Inu’s upward movement.
Speculators appear to be anticipating potential resistance for 1000SHIB at $0.02. Their confidence in this scenario could trigger a short squeeze, although sustainable spot demand is essential to maintain momentum for the memecoin’s breakout.