Why Shiba Inu (SHIB) Price is Up 36% Despite Subdued Trading Volumes

Shiba Inu Price Analysis

Shiba Inu price breached $0.000014 after a 3-day long consolidation, vital market indicators suggest SHIB will likely attract more demand in the week ahead.

SHIB Finally Breaks $0.000014 Support After 3-Day Consolidation

Shiba Inu’s price action has been nothing short of dramatic, especially after finally breaching the $0.000014 resistance level following a period of three-day consolidation. This move indicates that bulls are gradually building momentum, a development that coincides with a more favorable regulatory environment for cryptocurrencies.

The past month has seen SHIB grappling with intense market fear, uncertainty, and doubt (FUD), largely triggered by the $235 million WazirX hack. During this breach, over $100 million worth of SHIB was stolen, making it the highest haul among the assets involved, which included $52 million in Ethereum (ETH), $11 million in Polygon (MATIC), and smaller amounts of other tokens such as Floki (FLOKI) and Chainlink (LINK).

The hack-induced FUD led to a significant decline in SHIB’s price, plummeting 46% between July 17 and August 5. The mass exodus of existing holders and the hesitancy of new entrants exacerbated the situation, as the market feared a massive sell-off by the hackers.

However, as the dust begins to settle and positive developments emerge surrounding the WazirX case, SHIB has started to experience an upward trend. From August 5, SHIB rallied 33% in just three days, only to encounter resistance at $0.000014, which led to a brief two-day consolidation.

But SHIB has now extended the rally by another 3% as it rose as high $0.0000144 at the time of publication on Aug 11. The milestone breakout above the $0.000014 level on August 11 could signify the beginning of a new bullish cycle for SHIB.

SHIB Price Surges 36% Despite Subdued Trading Volume

Shiba Inu price has been deeply impacted by the WazirX hack, especially since the exchange is one of the most active platforms for trading SHIB. The hack led to a significant decrease in liquidity, with SHIB’s market volume plummeting from a peak of $53 million on July 19 to approximately $25 million by August 5.

Trading volume is a crucial metric that provides insights into market liquidity and the aggregate investor response to specific price trends. Between August 5 and August 11, despite a 36% increase in SHIB’s price, the trading volume continued to decline, dropping from $25.48 million to $23.23 million.

This divergence suggests two bullish scenarios. First, it indicates a smaller group of investors willing to pay higher prices for SHIB, driving up the price without a corresponding increase in trading volume. Secondly, it may reflect a supply squeeze.

With WazirX one of Shiba Inu’s most popular trading platforms currently embattled, fewer tokens are available for sale, putting upward pressure on SHIB prices as the crypto sector entered a recovery phase this week.

SHIB Price Forecast: $0.000015 Breakout Now in Sight

The technical indicators suggest that SHIB could be poised for a breakout above $0.000015. The recent price action shows a clear uptrend, with the price currently consolidating just below the $0.000015 resistance level.

The Balance of Power (BOP) indicator remains in positive territory, suggesting that buyers still have the upper hand. If SHIB can sustain momentum and break above $0.000015, the next key resistance level to watch is $0.00001779.

Conversely, should the price face rejection at this level, it could find support at $0.00001429, the previous resistance-turned-support level.

A successful breakout could open the door for further gains, potentially leading to a test of the $0.00002 psychological barrier. The overall market sentiment and ongoing developments around the WazirX case will likely play a pivotal role in determining SHIB’s price trajectory in the near term.