The Price of Shiba Inu Remained Under Pressure This Week as Buyers Stayed

The price of Shiba Inu remained under pressure this week as buyers stayed on the sidelines ahead of the FOMC decision.

The price of Shiba Inu (CRYPTO: SHIB) remained under pressure on Tuesday morning, as buyers stayed on the sidelines ahead of the FOMC decision. SHIB traded at $0.00001270, lower by nearly 20% over the past week.

Here’s a look at what happened.

What Happened: CoinGecko data showed that the volume of Shiba Inu traded on both centralized and decentralized exchanges over the past 24 hours had slumped to just $130 million as of Tuesday morning.

This volume was lower than other meme coins such as Dogecoin (CRYPTO: DOGE), which had a 24-hour volume of $730 million, which is understandable given that it has a market cap of $25 billion compared to Shiba Inu’s $7.5 billion.

SHIB’s volume was also lower than smaller coins such as Pepe (CRYPTO: PEPE), which had a volume of $520 million, Trump Coin, Bonk and Fartcoin, which had volumes of $803 million, $202 million and $136 million respectively. Other smaller meme coins with a higher volume than SHIB included Turbo, Pudgy Penguins and New XAI Gork.

Shiba Inu futures open interest had also stalled over the past few days, which is a measure of demand, and it stood at $153 million, down from a year-to-date high of $541 million.

On the positive side, the falling volume could be a sign that investors are accumulating the coin, which is a key principle of the Wyckoff Method, a renowned theory in financial markets.

The theory identifies four stages that assets go through: accumulation, markup, distribution and markdown. The first phase is characterized by low volume and sideways price movement.

Historically, crypto prices tend to rise when open interest declines and crash when it increases.

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What traders need to know: The last SHIB price prediction from BanklessTimes, which focused on the weekly chart, showed that the coin is likely to stage a strong comeback over time.

The eight-hour chart above shows that the SHIB price is forming an inverse head and shoulders pattern, a popular bullish reversal indicator. Its neckline is at $0.00001520, and the shoulders are at $0.00001085.

If the pattern holds, the Shiba Inu price may decrease to the right shoulder before staging a comeback. Further gains to the 50% retracement point at $0.00001754 will be confirmed if it rises above the neckline at $0.00001520.