A sudden spike in activity has been noted in the Shiba Inu network, where a remarkable growth of 1.6 billion SHIB tokens was registered alongside a 216% increase in network activity. Despite such triple-digit growth often supporting a positive market narrative, the current price trends of SHIB tell a different story.
Price Tensions Continue
The surge in network activity indicates a rapid acceleration in transactions involving the token over a short period. However, historically, similar upticks on the blockchain have not always translated into sustained price increases for SHIB. The daily chart fails to provide a clear indication of whether new purchasing power backs this recent movement.
Currently, SHIB has once again failed to break past the $0.00000520 to $0.00000530 range, dropping back to around $0.00000485. Notably, the price has slipped below short and medium-term moving averages between $0.00000500 and $0.00000515. This area, which once served as dynamic support, has now turned into a resistance zone.
While network activity for SHIB skyrocketed, the price structure lacks the robustness to confirm such dynamics.
Attempts at Revival Fall Short?
Recent months have underscored a technical weakness with SHIB. A rebound from approximately $0.00000410 in July led to a climb to $0.00000620 in August; however, this rally failed to establish a lasting trend. The September uptick stalled at $0.00000550, creating a new lower peak below the August high.
The long-term moving average hovers around $0.00000565, way above market levels, suggesting a continuous downward bias. The Relative Strength Index (RSI) points downward, remaining below the neutral 50 mark, indicating a weak momentum and price structure for SHIB.
Key Levels in Focus
In the short term, the $0.00000480 level is critical, and breaking below this could expose the token to the $0.00000460 to $0.00000440 range, with limited support available. Should prices fall below this band, the July lows of $0.00000410 may come into play again.
For a favorable outlook, SHIB needs to reclaim the $0.00000500 to $0.00000515 range and settle above the cluster of moving averages. Breaking through $0.00000550 could be an early sign of structural recovery.
Despite the notable 1.6 billion SHIB increase and 216% spike in network activity, without strong buying pressure, weaknesses in the chart persist.
Shiba Inu, a well-known memecoin developed on the Ethereum network, enjoys a large investor following. However, recent data reveal that increased on-chain activity alone is insufficient to boost the price outlook.
