Shiba Inu (SHIB) recently witnessed an eye-catching surge in on-chain activity, recording 5.76 trillion SHIB transactions within 24 hours on May 20. However, this remarkable spike in volume has not translated into strong price gains, revealing a disconnect between blockchain usage and investor sentiment.
Currently, SHIB trades between $0.00001440 and $0.00001460, where it finds support near its 100-day exponential moving average (EMA). This dynamic support zone has helped the token recover from recent lows, yet the market remains cautious.
Technical Indicators Highlight Key Resistance Ahead
On the daily chart, SHIB’s rebound aligns with a historically significant support zone. After retreating from oversold levels, the Relative Strength Index (RSI) now hovers around neutral territory. This shift suggests some renewed buying interest but falls short of signalling an overheated rally.
Most importantly, SHIB edges closer to the critical 200-day EMA, currently near $0.00001600, a level that has acted as a magnet for price action over recent months. Breaking and holding above this barrier could open the door for a move toward $0.000020, potentially ending a prolonged pattern of lower highs.
Nonetheless, such a breakout requires a combination of strong technical momentum and convincing on-chain confirmation.
On-Chain Data Signals Bearish Trends Despite Volume Spike
Despite the impressive transaction volume, much of the activity appears driven by internal repositioning or token distribution, rather than fresh accumulation by new investors. On-chain analytics provider IntoTheBlock highlights four bearish indicators affecting SHIB:
- Declining number of addresses in profit
- Flat net network growth
- Reduced whale concentration
- Waning retail enthusiasm
Supporting the latter, SHIB’s social engagement has declined slightly, with a drop in activity across platforms like Telegram. Moreover, about 54% of SHIB holders remain underwater, increasing pressure to sell whenever prices increase.
With large holders controlling approximately 74% of the token supply, spikes in volume driven by these whales may signal profit-taking rather than a bullish buildup. This reality means the recent volume surge could precede a price dump unless SHIB successfully breaks and sustains above the 200 EMA and surpasses the $0.000015 mark.
Related article: Shiba Inu Explodes With Over 1,100% On-Chain Spike—Is the Market About to Shift?
What This Means for SHIB Investors
SHIB’s massive transaction volume is a double-edged sword. On one hand, it reflects high network activity and some buying interest near key technical levels. On the other hand, the bearish on-chain signals and distribution patterns warn of potential downward pressure.
For SHIB to confirm a bullish reversal, it must decisively overcome the 200 EMA resistance and attract new demand from both retail investors and whales. Until then, traders should exercise caution and watch for signs of consolidation or sell-offs.
