Summary Shiba Inu’s on-chain activity increased 42%, but unclear transaction purposes prevent the metric from confirming renewed buying demand across markets. SHIB remains above $0.0000050 su
Shiba Inu’s on-chain activity has increased by 42%, but its price structure does not yet confirm renewed demand from buyers. According to network data, the increase reflects more transactions, wallet transfers, or other interactions involving SHIB holders across the blockchain.
However, the metric does not show whether users are buying tokens, selling holdings, or transferring assets between wallets and exchanges. SHIB trades near $0.00000521, representing a recovery from its July low of approximately $0.0000041 across trading platforms.
Moreover, price action remains beneath important resistance, while trading volume trails the levels recorded during previous rallies. Consequently, the activity increase needs broader market confirmation before traders can interpret it as evidence of sustained accumulation.
Also Read: Solana Transaction Expansion Opens Door to ZK Rollups and Complex Applications
SHIB faces strong resistance between $0.0000056 and $0.0000057, where a descending long-term moving average creates additional selling pressure. During its late-August rally, the token briefly crossed this region and reached approximately $0.0000062 before losing momentum.
Buyers could not defend the breakout, allowing SHIB to retreat beneath resistance and approach its shorter-term moving averages. Nevertheless, the token remains above a support cluster located around $0.0000050 and $0.0000051.
Source: TradingView
Holding this range could preserve the recovery structure and provide another opportunity to challenge the main resistance zone. Conversely, losing $0.0000050 would weaken the setup and expose lower support between $0.0000047 and $0.0000045.
Momentum indicators provide limited reassurance because SHIB’s daily Relative Strength Index remains near the neutral 50 level. Additionally, trading volume has declined considerably from the stronger activity accompanying rallies during July and August.
Lower volume suggests fewer market participants support the recovery, reducing the reliability of isolated upward movements. A sustained break above $0.0000057 would offer stronger evidence that increased blockchain activity represents genuine market demand.
Such a breakout would carry greater significance if volume expands and momentum moves firmly into bullish territory. Shiba Inu’s network activity indicates broader engagement, but the price chart still lacks decisive bullish confirmation. Stronger volume, improving momentum, and sustained gains above resistance remain necessary before SHIB can establish a dependable recovery trend.
Also Read: Ripple Executive Identifies Institutional Credit as XRP’s Killer Use Case
The post Shiba Inu On-Chain Activity Jumps 42%, but Price Signals Remain Unconvincing appeared first on 36Crypto.