The market is currently in a recovery phase, with BTC on the verge of reclaiming the $65,000 territory. Shiba Inu took advantage of this market rebound to regain lost ground, with SHIB up 19.68% in seven days, the second-largest weekly gainer among the 15 largest cryptocurrencies.
Shiba Inu interest declines despite upward trend
However, its recovery movement has not received enough support from market participants. This is because despite the continued rebound, market activity has clearly decreased. Compared with the previous upward trend, the buying interest in SHIB is relatively low.
This trend could be due to investor apathy, as most market participants are unsure whether bulls can sustain a sustained rally. Notably, Shiba Inu’s 24-hour trading volume has been low, especially during the uptrend. Market data shows that the average trading volume over the past week was only $262 million.
While this is relatively higher than SHIB’s volume during the consolidation phase, it is lower than expected for an uptrend. For context, during the previous uptrend, Shiba Inu hit a yearly high of $0.000045, while SHIB’s volume averaged as high as $7 billion between March 1 and 8.
It’s worth noting that for the Shiba Inu’s continued upward momentum to receive a significant boost, its trading volume would have to increase significantly. This growth may come from a return to investor interest, prompting an increase in deal activity.
SHIB calls for increased volatility and enhanced trading activity
From this perspective, the Shiba Inu would need a combination of increased trading activity and rising volatility to record price gains similar to those seen in early March.
Interestingly, during the uptrend in March, SHIB observed an increase in daily active addresses and daily volatility. For context, on March 5, daily active addresses surged to 42,334, while volatility reached 0.1794 that day. The confluence of these two indicators led to the surge that ultimately resulted in $0.000045.
However, data from Santiment confirms that the continued rally will only trigger an increase in volatility. Notably, Shiba Inu’s volatility recently surged to a 3-month high of 0.0574. However, this surge was not accompanied by an increase in active addresses, which currently stand at just 3,974.
Historically, every time Shiba Inu has seen a strong surge, it has typically occurred when volatility and active addresses rose simultaneously. The market observed this pattern in May 2021, when SHIB surged to $0.00003. This also occurred during its surge to an ATH of $0.00008845 in October 2021.
Shiba Inu Resistance Level
If SHIB sees a similar convergence during this rally, the uptrend could lead to higher heights. Currently trading at $0.000019, Shiba Inu is expected to recover and break above $0.00002. According to data from IntoTheBlock, SHIB could face resistance between $0.00002 and $0.000025. This range has a sell wall of 97,160 addresses.
However, stronger sell barriers are located at the $0.000025 to $0.00003 range and the $0.00003 to $0.000036 range. These two walls represent Shiba Inu’s greatest points of resistance. Therefore, a breakout could leave SHIB facing weaker resistance at $0.000045, where 56,990 addresses hold 9.58 trillion tokens. A move to $0.000045 would require a 129% gain.
