Shiba Inu (SHIB) has outperformed competitors like Pepe (PEPE) in short-term gains over the past week. Despite SHIB and Dogecoin (DOGE) recording gains of less than 1%, PEPE offered speculators a significant 22% return. This performance shift has drawn attention to the trading volumes and market dynamics surrounding these popular meme tokens.
What Are the Key Trading Volumes?
According to data, PEPE’s daily trading volume reached $3 billion, substantially eclipsing SHIB’s $500 million and DOGE’s $1 billion. This surge in volume indicates a prevailing FOMO (Fear of Missing Out) sentiment among investors. Meanwhile, SHIB has been trading sideways since mid-April, which might be a concern for its short-term holders.
Is a Breakout Imminent for SHIB?
SHIB has been unable to surpass the $0.000027 mark, fluctuating between the 50% and 61.8% Fibonacci levels. Repeated retests of the highest range have been met with resistance, a bearish order block that hinders further upward movement. SHIB bulls need a decisive daily close above the 50% Fib level to see more upside, but the current neutral RSI suggests that strong buying pressure is still lacking.
Concrete Strategies for SHIB Investors
- Monitor the trading volumes to gauge market sentiment and potential price movements.
- Watch for a daily close above the 50% Fibonacci level as an indicator of potential upside.
- Pay attention to on-chain metrics for signals of increased selling pressure or bullish sentiment.
- Utilize mixed signals in the futures market to inform strategic trading decisions.
This situation suggests SHIB may remain stagnant for a while. Despite a rise in SHIB’s open interest to $90 million, indicating bullish sentiment in futures, on-chain data suggests increased selling pressure with more SHIB tokens moved to exchanges. Moreover, negative market sentiment underscores a pessimistic outlook for SHIB’s price. However, should SHIB manage to expand its trading range, investors could leverage these fluctuations to take profits and strategically re-enter the market.
