- Healthy on-chain movement
- Market’s reaction
The amount of 3,477,149,925,825 tokens was transferred across the network in the last day, according to a Shiba Inu blockchain explorer, highlighting the recovery of on-chain activity. A huge increase in transaction volume like this indicates greater involvement from larger institutions as well as retail holders, which could lead to increased market volatility.
Healthy on-chain movement
According to SHIB’s on-chain metrics, billions to trillions of tokens were transferred day by day, with a most recent uptick to three trillion. This suggests that the ecosystem is somewhat healthy and not experiencing any anomalies.
Source: Etherscan
Given that bulk transactions continue to be a defining characteristic of SHIB’s on-chain activity, large whale movements most likely also played a role. Price changes are typically preceded by active phases of accumulation or portfolio repositioning, as indicated by the magnitude of these movements.
Market’s reaction
Even with the surge in transactions, SHIB’s chart is not looking that great. Following several retests, the price is consolidating around $0.0000125 and holding onto an ascending support line. In contrast to the RSI, which is neither overheated nor oversold, moving averages continue to be compressed, indicating indecision.
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The on-chain surge has not been reflected in trading volume on exchanges, which begs the question of whether the majority of activity is repositioning or pure buying pressure. Price volatility usually occurs within weeks of a spike in SHIB’s on-chain volume.
Bullish momentum might resurface and push a test of the resistance zone between $0.0000135 and $0.0000141, if market participants perceive this as accumulation. Alternatively, if the rising trendline is broken, SHIB may return to the $0.000011 support.
SHIB is in a position that is not obvious for short-term investors and might not show enough traction for the future. Despite the bullish structural signal of the on-chain surge, there is currently no price confirmation. It is important for traders to keep a close eye on SHIB’s ability to convert volume growth into positive momentum.
