As of late, Shiba Inu (SHIB) has been experiencing a period of decreased volatility, with the price hovering around $0.00000813 for the past week. This stagnant phase could potentially be the calm before a significant price shift. One critical metric that might shed light on this is the global in/out of the money (GIOM) by IntoTheBlock, which assesses the average purchase cost of tokens across all addresses with a balance. This metric suggests that a mere 76 trillion SHIB tokens need to be in circulation for the price to see an upward trajectory.
The Implications of the GIOM Metric on Shiba Inu’s Price
The GIOM metric reveals that a substantial number of SHIB holders are presently ‘in the money,’ implying that the current price exceeds their average purchase cost. This could potentially establish a resistance level for the cryptocurrency, hindering its price movement.
The Double-Edged Sword of Low Volatility
When considering the current state of Shiba Inu’s price, the low volatility presents a double-edged sword. On one hand, it suggests a lack of buying pressure. Conversely, it indicates that a smaller liquidity pool is needed for an upward price shift. This could prove beneficial in the event of a sudden surge in buying power, as less capital would be required to drive the price up.
Upcoming Developments in the Shiba Inu Ecosystem
Moreover, forthcoming advancements in the Shiba Inu ecosystem, like the Shibarium relaunch, could potentially stimulate price movement. Despite initial setbacks such as over 1,000 ETH being trapped in the bridge, the relaunch could sway market sentiment and potentially drive the price upwards.
While the current low volatility and the GIOM metric indicate a resistance level for SHIB, they also offer an opportunity. A sudden influx of buying power could easily push the price higher due to the low liquidity needed. For those interested in tracking these movements, the cryptoview.io application could prove to be a useful tool.
