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The on-chain activity of Shiba Inu is displaying all of the typical symptoms of stagnation; 319.6 billion SHIB in 24-hour transactions may seem like a lot, but the context totally undermines the significance of that number. This amount is hardly noticeable as movement for a token with a supply in the hundreds of trillions. It is the equivalent of background noise on the blockchain.
Shiba Inu stagnates
The situation is made even more dire if we take a good lock at the historical large transaction volume chart. Whale transactions that have exceeded several trillions in a single day have increased during the last few years. In contrast to those, the current activity is negligible and contributes to the asset's perceived lack of interest.
The recent decline to the 319 billion range shows that whatever interest generated that burst was speculative and did not result in sustained momentum. The seven-day high was 3.49 trillion SHIB on July 30. This is also the case with the market chart. SHIB is currently trading at $0.00001207 following an unsuccessful attempt to breach the resistance of the 200-day moving average at approximately $0.00001448.
SHIB getting oversold
The RSI is currently falling toward oversold levels, and it is below important short-term and midterm moving averages. Today has seen a slight rebound, but volume has been weak, which is to be expected in a market lacking in conviction. The on-chain statistics are even more worrisome because of this weakness.
There is currently no story, no speculation and no utility behind a meme coin like SHIB if it isn't attracting retail hype or speculative attention and whales aren't shifting positions or building up. SHIB is essentially drifting unless there is a surge in active addresses, a breakout in transaction volume or a move above the 200 MA with solid confirmation.
Given SHIB's typical scale, the 319 billion in large transactions might as well be a rounding error: 318 billion SHIB in 24 hours is more of a sign of weakness rather than strength. The asset is in a coma until whales come back or the community regurgitates.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team