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Even though Shiba Inu's price is still stuck in a protracted downward trend, the market has been taken aback by the sudden spike in on-chain activity. The token's high transaction volume skyrocketed over the past month, reaching a staggering 24 trillion SHIB in early June. It is hard to overlook the 600% increase in whale transaction volume even though price action has not reflected this parabolic on-chain momentum.
SHIB is still confined below a strong resistance cluster on the price chart, which is indicated by the 50, 100 and 200 EMAs. The $0.0000130-$0.0000140 range, which has capped several rally attempts since May is where recent candles consistently show rejection. The increase in transaction volume in spite of the ongoing bearish bias points to either strategic repositioning by large holders or accumulation beneath the surface.
Notably SHIB reported that 11.6 trillion tokens were traded on June 30, indicating that major players have not given up on the asset. The trend is still technically bearish. The 200 EMA keeps descending gradually, and momentum indicators such as the RSI show weak buying power as they remain below the 50 mark. The idea that speculative interest among retail traders has diminished is supported by the comparatively flat daily volumes on exchanges.
Nonetheless, volatility is frequently preceded by this contrast between price stagnation and massive on-chain activity. Before a breakout, there is usually either heavy distribution or an aggressive accumulation phase preceded by large transfers. Any significant move above the EMA cluster could start a liquidation cascade or spur a sharp upward rally because SHIB's price has been trapped in a small range for months.
On the surface, Shiba Inu's price performance appears unimpressive, but the hidden strength in transaction metrics reveals otherwise. SHIB might be ready for a volatility spike that resets market expectations if whales are gathering instead of distributing. To ensure that this spike in volume is not just noise but rather the beginning of a significant reversal, traders should wait for a sustained close above the $0.0000140 level.
Vladislav Sopov
U.Today Editorial Team