According to U.Today, Shiba Inu's volatility has seen a significant decrease, despite the cryptocurrency market remaining relatively active. This drop in volatility could potentially deter investors from the token, as it is often used as a tool for risk exposure. Historically, the high volatility of SHIB has attracted traders looking for quick profits. However, with the current stabilization, these speculative investors may find the token less appealing.
The lack of significant price movement could suggest that larger players, also known as 'whales', are preparing for a substantial move. These whales, or substantial cryptocurrency holders, have a significant impact on market dynamics. The current period of low volatility could be an indication that these influential investors are increasing their SHIB holdings in anticipation of a significant price move. Large purchases are often made in small increments to avoid major price shifts, hence accumulation phases are often characterized by periods of low volatility.
In terms of technical indicators, the Relative Strength Index (RSI) is neither overbought nor oversold, indicating a neutral position. This suggests that there may be room for a potential upward or downward move without immediate pressure from overbought conditions. The 50-day and 100-day moving averages are where SHIB is currently consolidating. If whale activity increases, a major breakout could occur before this consolidation phase ends.
When volatility decreases, a noticeable decrease in trading volume is also observed. This decrease could indicate that retail investors are holding onto their money, providing whales with an ideal opportunity to enter the market without causing significant price fluctuations. Despite the declining volatility of the token, the general market sentiment remains cautiously optimistic. However, concerns have been raised about SHIB's future trajectory.