Recently, Shiba Inu (SHIB) announced that there will be a notable divergence in their price volume. This move forms new highs without the support of increasing volume and signals an eventual disbelief in the upward price movement.
Definitely, there will be an essential shift in attention for investors and traders. But, historic price volume divergence also means that traders and investors can now be sure of the fact that there is no strong buying pressure on the crypto. It is a precursor to market correction.
Shiba Inu has not had any significant price performance despite the over 18,000% hike in token burn volume (a movement that always translates into price increase and reduction in supply). For this reason, the price volume divergence could be a remarkable movement for the coin.
Moreover, SHIB needs help to meet the 200-day Exponential Moving Average (EMA). EMA is a common technical indicator for signaling resistance in bearish conditions and support in bullish conditions. It would be important for SHIB to surpass the EMA in order to aid positive thoughts of bullish conditions and ignore potential rallies.
The worry of an enthusiastic community engaged in token burns and technical analysis presents a more complex concept for SHIB’s price action in the future. As the market at large braces for possible corrections, the ability of SHIB to maintain its current price levels may be tested.
Investors and traders of SHIB should closely monitor these developments. The price-volume divergence, in combination with the token burn surge and the resistance faced at the 200 EMA, lays out a scenario where any bullish news could be quickly counteracted by a broader market downturn or a lack of follow-through in buying pressure.
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