SHIB’s range formation persists — This is what traders can expect
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Shiba Inu continued to trade sideways after another price rejection.
- SHIB’s Mean Coin Age rose along with a decrease in supply on exchanges hinting at a likely price rally.
Shiba Inu [SHIB] continued to trade sideways with bears standing in the way of buyers at the $0.00000758 price zone. The 6.5% drop from the price zone kept SHIB stuck between the low of $0.00000698 and the high of $0.00000760.
Read Shiba Inu’s [SHIB] Price Prediction 2023-24
With Bitcoin [BTC] trading between $27.2k to $28k over the past day, a breakout may be hard for Shiba Inu traders.
Low volatility hinders significant price movement for SHIB
The On Balance Volume (OBV) highlighted the lack of volatility for Shiba Inu. The indicator recorded a sharp decline in mid-August and remained distinctly flat-lined afterward.
On the other hand, the Relative Strength Index (RSI) shifted between the upper and lower range, as bulls and bears tussled for dominance.
A prerequisite for a significant move for Shiba Inu would rest on a rapid increase in its daily trading volume. As such, this price range formation presents a good opportunity for either buyers or sellers to take advantage of.
Consequently, a bearish breakout would take SHIB toward the $0.00000651 price level. On the flip side, a bullish breakout would take the memecoin toward the $0.00000807 resistance level.
Mean coin age on the rise along with a decrease in supply on exchanges
The descent of price to the range-low along with on-chain activity could present buyers with a buying opportunity. According to data from Santiment, Shiba Inu’s 90d Mean Coin Age was on a significant uptrend. This hinted at a network-wide accumulation of SHIB.
Realistic or not, here’s SHIB’s market cap in BTC terms
At the same time, the supply on exchanges decreased massively which signaled that traders were looking to hold onto Shiba Inu for the long term. This could be interpreted as positive signs for bulls with buyers needing a strong rally to reverse the bearish market structure.