HomeMarket NewsShiba Inu

Shiba Inu Faces Liquidity Strain as Trading Activity Plummets

Shiba Inu Faces Liquidity Strain as Trading Activity Plummets

  • Shiba Inu battles fading investor interest as trading volume collapses sharply.
  • Market analysts warn of weak momentum and declining liquidity across SHIB.
  • Token’s prolonged consolidation signals potential breakdown without renewed participation.

Investor sentiment surrounding Shiba Inu appears to be fading rapidly as the token struggles to maintain momentum on major exchanges. With trading activity drying up and volume levels nearing record lows, SHIB is facing mounting pressure amid a broader decline in retail participation. The digital asset, once at the center of meme-coin hype, now trades near $0.0000102 after a sharp October correction, signaling deepening uncertainty across its market structure.


Despite modest attempts at recovery, SHIB remains below critical resistance levels. The token continues to trade under the 100-day and 200-day moving averages, positioned around $0.0000113 and $0.0000128, respectively. According to TradingView data, the recent sideways action highlights a narrow consolidation phase with limited buying power. Market watchers note that the current setup reflects weakening momentum rather than sustained accumulation.


shiba

Source: Tradingview

Also Read: XRP Plot Twist: Is This What Brad Garlinghouse Was Working for All Along?


Volume Collapse Raises Concerns Over Market Stability

Beyond the price movement, the steep decline in trading volume paints a troubling picture. Activity has dropped by more than 60% since early October, showing clear evidence of declining enthusiasm among investors. Such volume erosion poses risks for SHIB, as reduced liquidity often results in unreliable price swings and increased vulnerability to sharp fluctuations caused by relatively small orders.


Technically, SHIB’s outlook remains fragile. The daily relative strength index hovers around 45, showing a neutral to bearish stance. If the token slips below the lower trendline support near $0.0000090, it could quickly fall toward $0.0000075, revisiting price zones not seen since midyear. Market analysts emphasize that the challenge extends beyond the chart, as the lack of participation undermines any potential rebound.


Weak Market Participation Threatens Long-Term Relevance

Moreover, the shrinking liquidity means even a temporary rally could falter without sustained volume. Investor caution is growing, and the absence of retail inflows leaves SHIB exposed to further weakness. Without renewed interest or accumulation, the asset risks sliding into extended stagnation.


Shiba Inu’s present condition highlights a deeper structural issue within its ecosystem. As trading activity fades, the token’s relevance may continue to diminish unless sentiment shifts and trading volume revives in the coming weeks.


Also Read: Bitcoin Marks 17th Anniversary: A Milestone in Digital Currency’s Evolution