Shiba Inu (SHIB) surges 36% despite low trading volumes, driven by strategic buying, supply squeeze, and positive market sentiment following the WazirX hack.
Shiba Inu, the highly popular meme-based cryptocurrency, surged 36% in a surprise price shock, defying the usual low-volume trading. Indeed, quite an unexpected rally amid a dramatic downturn in high volatility markets, led by one of the most active platforms in trading SHIB: one of the largest security breaches against WazirX.
The hack in WazirX resulted in a huge outflow of SHIB tokens, which lowered the aggregate market liquidity for SHIB. This reduction in liquidity was additionally reflected by a steep reduction in SHIB’s market volume, which has fallen from $53 million at its peak on July 19 to around $25 million on August 5. While the trading volume had gone down, SHIB started to bounce back on investor speculation and tactical buying as prices fell to attractive levels.
But one of the main drivers has been the new enthusiasm of a fewer number of buyers who pay higher prices for the token. The price and volume divergence shows a possible supply squeeze, where the low availability of SHIB might actually be pushing up the price through exchanges, even in the face of low trading volumes. Recovery of the larger crypto market and favorable regulatory environment came together to create an optimistic sentiment about SHIB.
The breakout above the $0.000014 resistance after consolidation rounded out for SHIB marked a pivot point, indicating the beginning of a possible new bullish cycle. Combining this technical breakout with the specific dynamics that mark investments in meme coins and further evolution occurring within the crypto space, SHIB might stand a good chance to cling to higher prices in the near term, especially if it manages a break above the next resistance at $0.000015.
FAQs:
Why did Shiba Inu record a price increase on a day when trading volumes were at the lowest?
It was owing to strategic buying into SHIB by a smaller pool of investors, a possible supply squeeze, and an upbeat sentiment on the back of WazirX hack.
What happened to SHIB’s trading volume because of the WazirX hack?
The WazirX hack sent its trading volume tumbling from $53 million down to almost $25 million, which had temporarily pulled the rug on liquidity.
At what resistance level did SHIB break to trigger the recent bullish action?
SHIB has finally broken out of the $0.000014 resistance mark after a little consolidation, signaling what could be another bullish cycle.
Can SHIB price continue an uptrend given the prevailing low trading volumes?
Yes, if SHIB keeps going up and breaks above the resistance around $0.000015, then further appreciated prices could be set.
What does the supply squeeze mean for SHIB’s recent price action?
The supply squeeze would suggest scarcity in the availability of SHIB tokens on exchanges, despite the lower trading volume that has contributed to the price gain.
