The Shiba Inu price remained under pressure this week as buyers stayed on the sidelines ahead of the FOMC decision. SHIB traded at $0.00001270, nearly 20% lower than its peak last week. Let’s explore why the SHIB coin volume has dropped and whether the coin will stage a strong comeback.
SHIB Volume and Futures Open Interest Have Crashed
CoinGecko data shows that the volume of Shiba Inu traded in both centralized and decentralized exchanges has slumped lately. On Tuesday morning, this volume stood at just $130 million.
This amount was much lower than other meme coins. For example, Dogecoin had a 24-hour volume of $730 million, which is understandable since it has a market cap of $25 billion compared to Shiba Inu’s $7.5 billion.
SHIB’s volume was much lower than other smaller coins. Pepe had a volume of $520 million, while Trump Coin, Bonk, and Fartcoin had $803 million, $202 million, and $136 million. Other smaller meme coins with a higher volume than SHIB were Turbo, Pudgy Penguins, and New XAI Gork.
Shiba Inu’s futures open interest has also stalled in the past few days, indicating low demand. It had interest of $153 million, down from the year-to-date high of $541 million.
On the positive side, falling volume could be a sign that investors are accumulating the coin. This is a key principle of the Wyckoff Method, a renowned theory in financial markets.
The theory identifies four stages that assets go through: accumulation, markup, distribution, and markdown. The first phase is characterized by low volume and sideways price movement.
Historically, crypto prices tend to surge when open interest declines and crash when it increases.
Shiba Inu Price Prediction
BanklessTimes’ last SHIB price forecast noted that the coin will likely surge over time. That forecast focused on the weekly chart, which has formed the bullish XABCD harmonic chart pattern.
The eight-hour chart above shows that the SHIB price is forming an inverse head and shoulders pattern, a popular bullish reversal indicator. Its neckline is at $0.00001520, and the shoulders are at $0.00001085.
If the pattern holds, the Shiba Inu price may decrease to the right shoulder before staging a comeback. Further gains to the 50% retracement point at $0.00001754 will be confirmed if it rises above the neckline at $0.00001520.
READ MORE: Best Crypto to Buy as Ethereum Pectra Upgrade Day Arrives
