Shiba Inu (SHIB), the meme-inspired cryptocurrency, finds itself in a state of low volatility, with its price stagnating around $0.00000813 over the past week. While this lack of movement might suggest a period of stagnation, there are signs that this calm could be the precursor to a notable shift. The Global In/Out of the Money (GIOM) metric, a key indicator by IntoTheBlock, unveils intriguing insights into the potential future of SHIB’s price trajectory.
The GIOM metric unveils the average purchase cost of tokens held at various addresses. If the prevailing price is higher than the average cost, the address is considered “in the money,” and if it’s lower, it’s “out of the money.” With the GIOM metric applied to Shiba Inu, approximately 76 trillion tokens remain in the “in the money” zone, hinting at a substantial number of SHIB holders who might resist selling at current levels. This accumulation of “in the money” holders could serve as a resistance barrier for any upward price movement.
Shiba Inu’s Dual-Edged Low Volatility
From a technical perspective, the current low volatility in SHIB’s price is a two-edged sword. The absence of substantial buying pressure is evident, but it also signifies that minimal liquidity is required to propel the price higher. This factor could prove advantageous in the face of a sudden surge in buying activity, as even a modest capital influx could significantly lift SHIB’s value. This proposition is bolstered by the imminent developments in the Shiba Inu ecosystem, particularly the relaunch of Shibarium. Despite initial hiccups, such as Ethereum being locked in the bridge, the relaunch holds the potential to invigorate market sentiment and potentially drive the price upwards.
While the prevailing low volatility and the insights provided by the GIOM metric point towards a resistance threshold for SHIB, they concurrently present an opportunity. A sudden influx of buying power could swiftly propel the price higher due to the reduced liquidity required for substantial movements. This scenario underscores the dynamic nature of cryptocurrency markets, where shifts can occur rapidly and significantly.
In conclusion, Shiba Inu (SHIB) currently resides within a realm of low volatility, laying the groundwork for potential price fluctuations. The GIOM metric highlights a substantial accumulation of “in the money” holders, acting as a potential resistance level. Simultaneously, the technical implications of low volatility reveal the advantage of minimal liquidity requirements for upward movements.
As the Shiba Inu ecosystem prepares for key developments, including the relaunch of Shibarium, the cryptocurrency market is poised for potential catalysts that could propel SHIB’s price in either direction. As traders and investors observe these indicators, the delicate balance between resistance and opportunity will be crucial in predicting the future of SHIB’s price movement.