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With an additional 1.6 billion SHIB added to the relevant on-chain metric and a 216% increase in activity, Shiba Inu is experiencing yet another sudden spike in network activity. A triple-digit increase could normally bolster a bullish narrative. The issue is that SHIB's current technical structure appears to be getting worse.
Shiba Inu's activity improves
The rise indicates a significant acceleration of activity surrounding the token in a brief amount of time. Nevertheless, isolated on-chain outbreaks have frequently failed to result in long-term increases in SHIB prices. The daily chart shows little indication of whether that activity is accompanied by additional demand, which is what matters at this point.
After yet another rejection from the $0.00000520–$0.00000530 region, SHIB is currently trading around $0.00000485. More significantly, the token has dropped below a number of closely spaced short- and medium-term moving averages in the range of $0.00000500–$0.00000515. The cluster served as dynamic support in the past. Overhead resistance is now the result.
Technically speaking, SHIB is in a challenging situation. The August move toward $0.00000620 was one of several strong upward impulses that resulted from the recovery that began in July at about $0.00000410. However, neither breakout proved to be a long-lasting trend. Another lower high compared to August was produced by the September rebound, which also stalled at $0.00000550.
Complicated technical situation
Near $0.00000565, the long-term moving average is still much higher than the market, supporting the overall bearish structure. In the meantime, the RSI is pointing lower and has fallen below the neutral 50 level. As a result, SHIB lacks both a favorable moving-average positioning and a strong momentum signal.
The current level to keep an eye on is $0.00000480. Relatively little established support would remain before $0.00000460–$0.00000440 in the event of a decisive breakdown. The July lows around $0.00000410 become relevant once more below that.
SHIB must first recover $0.00000500–$0.00000515 and stay above the moving-average cluster in order for things to improve. Recovering $0.00000550 would offer much more compelling proof of a structural recovery.
Although the 216% outbreak and the addition of 1.6 billion tokens are noteworthy on-chain developments for the time being, SHIB's price structure is technically weak at the moment. The activity spike by itself doesn't do much to fix the chart in the absence of corresponding buying pressure.
Dan Burgin
U.Today Editorial Team
