Shiba Inu (SHIB) is currently experiencing a tough period, with trading volume and large transactions hitting all-time lows. Despite SHIB’s price performing relatively well in recent weeks, market interest seems to be dwindling, as shown by a significant drop in on-chain activity, especially trading volume
Liquidity Concerns
SHIB’s liquidity position is weakening, which may lead to extended periods of rangebound trading. This trend often signals withdrawals from an asset like SHIB. Recent data shows a slowdown in large transactions, with SHIB recording only 98 large transactions in the past 24 hours.
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September 4 marked a seven-day high for these transactions, but this figure is notably lower compared to SHIB’s trading activity during early 2022 and 2021. The current volume trends indicate a lack of whale interest, which previously drove SHIB’s volatility.
SHIB/USDT Chart Source: TradingView
SHIB now seems to be struggling below its key moving average, which could act as a resistance level according to the price chart. Although the token’s price stabilizes around $0.00001314, the situation remains unstable due to low volume and liquidity.
Technical Indicators and Market Sentiment
The Relative Strength Index (RSI) for SHIB is slightly oversold, hovering around 42. If new buying interest does not emerge, SHIB risks becoming stuck in a narrow trading range and losing momentum.
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Traders often move their capital away in search of better opportunities when market volatility is absent. Additionally, the lack of whale activity exacerbates SHIB’s liquidity issues, suggesting that institutional or large-scale investors are pulling back.
SHIB’s current market conditions highlight low trading volume, reduced whale interest, and weakening liquidity, which could hinder its price momentum and lead to prolonged rangebound trading.
