According to current statistics, the Shiba Inu token (SHIB) has had a period of relative stasis over the previous 24 days, but this may change in the following week. The cryptocurrency, known for its meme-coin roots, hasn’t shown much volatility lately, but a number of signs point to potential future major price movement.
Recent data indicate that SHIB may be facing a liquidity crisis. The statistics show a substantial decline in the number of major transactions, which have fallen from an average of 365 to 95. Shiba Inu’s decentralised exchange, ShibaSwap, has also experienced a sharp decline in total value locked (TVL), which has dropped from 600 million in November 2021 to just 26 million.
These figures may initially appear concerning and suggest a liquidity problem. However, a more thorough investigation indicates that this could just be a transient circumstance. Order book data, which sheds light on buyer-seller transaction disparities, indicates a rise in SHIB purchases throughout a variety of time periods, while wallet data paints a more complicated picture, with holdings rising for certain ranges while falling for others.
Surprisingly, data on network utilisation shows a decline from an average of 7,000 daily transactions to about 3,500. But this does not automatically indicate a catastrophe. Instead, it may signify a longer period of SHIB consolidation as holders of tokens hold onto them in expectation of future price changes. Given the price stability and reduced volatility, it appears probable that SHIB may be getting ready for a big price change.
Even while the data at hand indicates a brief period of stagnation and consolidation, it is obvious that the market dynamics for Shiba Inus are everything from straightforward. As always, in such unstable conditions, caution and a close watch on the market are crucial.
