Shiba Inu On-Chain Activity Rises 42% as SHIB Struggles to Confirm Recovery
Shiba Inu on-chain activity has increased 42%, signaling greater blockchain engagement among SHIB holders, but the token’s price action has yet to provide clear evidence of renewed buying demand.
SHIB is trading near $0.00000521 after recovering from a July low of approximately $0.0000041 across trading platforms. Despite the rebound, the token remains below important resistance levels, while trading volume is still weaker than during previous rallies.
The increase in on-chain activity, based on network data, can reflect transactions, wallet transfers and other interactions involving SHIB. However, the metric alone does not establish whether users are accumulating tokens, selling holdings or moving assets between wallets and exchanges.
That distinction leaves the 42% increase difficult to interpret as a standalone bullish signal.
Shiba Inu On-Chain Activity Faces Price Confirmation Test
SHIB is approaching a significant resistance area between $0.0000056 and $0.0000057. A descending long-term moving average adds further pressure around that zone.
The token briefly moved above the area during its late-August rally, reaching approximately $0.0000062 before momentum faded. Buyers were unable to sustain the breakout, and SHIB subsequently fell back below the resistance zone and moved toward shorter-term moving averages.
For now, the $0.0000050-$0.0000051 area provides an important support cluster. Holding above this range would preserve the recent recovery structure and leave room for another attempt at the higher resistance zone.
A break below $0.0000050, however, could weaken the setup and expose the next support area between $0.0000047 and $0.0000045.
SHIB Volume and Momentum Remain Limited
Technical momentum also offers limited confirmation of a stronger recovery. SHIB’s daily Relative Strength Index remains close to the neutral 50 level, while trading volume has declined substantially from the levels seen during the July and August rallies.
Lower volume can make individual price advances less convincing because fewer participants are supporting the move. As a result, the increase in blockchain activity has not yet been matched by a corresponding expansion in market participation.
A sustained move above $0.0000057 would provide stronger technical confirmation that the increased network activity is translating into market demand. Such a breakout would carry more significance if accompanied by rising trading volume and a clearer shift in momentum toward bullish territory.
For now, Shiba Inu’s 42% increase in on-chain activity points to greater network engagement, but the price chart remains less decisive. Holding support, expanding volume and breaking above resistance would be needed to establish a more dependable recovery trend.
Writer: Marcus RenfieldCrypto Market Analyst & Onchain WriterMarcus Renfield covers cryptocurrency markets with a focus on onchain data, Bitcoin price action, and emerging market narratives. His writing examines how capital flows, network activity, and broader market structure influence short- and medium-term trends.He aims to provide clear, data-informed analysis for readers seeking a deeper understanding of crypto market dynamics.