The market volatility of Shiba Inu has intensified.
Coin accumulation continues despite the risk of a price drop.
Leading meme token Shiba Inu [SHIB] is likely to extend its month-long losing streak as volatility markers assessed on the weekly chart show that the coin’s market remains wildly volatile.
As of press time, SHIB’s price has fallen 30% and is trading at $0.00003 at press time, according to CoinMarketCap.
All bark but no bite?
The token’s volatility marker readings observed on the weekly chart show that SHIB’s price remains vulnerable to further declines as market volatility persists.
For instance, the gap between the upper and lower bands of the coin’s Bollinger Bands indicator has widened.
The indicator measures market volatility and identifies potential price trends. When the gap between its upper and lower bands widens, it indicates a surge in price volatility for the underlying asset.
Furthermore, if this gap is widening as the asset price moves in a particular direction, it indicates that the trend is strengthening.
As for SHIB, its continued price decline, coupled with the widening Bollinger Band gap, indicates a strong downtrend.
At press time, SHIB’s average true range was on an upward trend, which confirms the volatility of the SHIB market. The indicator measures market volatility by calculating the average range between high and low prices over a specified time period. When it spikes, it indicates that price fluctuations have become more significant.
Likewise, SHIB’s Chaikin volatility indicator, which measures the difference between an asset’s highest and lowest prices over a specified period, has remained relatively flat since late March.
Generally speaking, when the Chaikin Volatility Indicator bounces back to higher values, it signals the potential for large price moves.
SHIB soldiers remain resilient
Although SHIB remains at risk of further declines, accumulation by market participants continues. This is confirmed by the coin’s key momentum indicators also observed on the weekly chart.
As of press time, its relative strength index (RSI) was 61.54 and its money flow index (MFI) was 75.57.
These indicators suggest that buying activity is continuing even though the SHIB value could fall further.
