Shiba Inu (SHIB) is currently riding a wave of excitement, with its Shibarium blockchain witnessing a staggering 1,557% surge in active accounts and processing 1.76 million daily transactions. This remarkable spike in on-chain activity has the SHIB community buzzing with enthusiasm. However, the question remains: can this activity translate into a price breakout for SHIB, or will it continue to face resistance that stifles its upward momentum?
Mixed Signals In Technical Indicators
To gauge the potential for a breakout, it’s crucial to analyze Shiba Inu’s Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) indicators. Currently, the MACD is showing narrowing bars, hinting that a shift in momentum may be on the horizon. However, the MACD line is still slightly below the Signal line, indicating that a bullish trend has not yet fully materialized. Meanwhile, Shiba Inu’s RSI sits at 51.42, suggesting a neutral market sentiment.
This duality means that while SHIB is not in oversold territory, it also lacks the momentum needed for a significant rally. Without a clear bullish signal, traders may remain cautious as they navigate the volatile waters of cryptocurrency.
On-Chain Data Reveals Caution
Further insights from on-chain metrics paint a picture of cautious sentiment surrounding SHIB. Recent data indicates a net network growth of -0.22%, revealing a slight decline in network participation. Notably, only 0.05% of Shiba Inu holders are classified as large holders, providing a minor bullish signal but lacking the strength to inspire widespread confidence.
The “In the Money” metric shows a reading of -0.63%, meaning that most holders are currently experiencing slight losses. More concerning is the -4.11% drop in large transactions, suggesting that whales—often significant market movers—have been retreating. This combination of factors leans heavily towards a bearish outlook for SHIB’s on-chain activity.
At the time of writing, SHIB’s exchange reserves are steadily declining, currently sitting at 138.67 trillion Shiba Inu tokens. Historically, a decrease in exchange reserves indicates accumulation as tokens are withdrawn from exchanges, which can reduce selling pressure. However, over the last 24 hours, SHIB’s reserve flow has increased by 0.02%, hinting at potential short-term selling pressure.
Moreover, the long/short ratio reveals that 52.05% of traders are currently short on SHIB, a further indication of skepticism in the market. This bearish sentiment among traders adds another layer of complexity to SHIB’s price outlook.
The Path to a Potential Breakout
In summary, while Shibarium’s explosive growth presents exciting opportunities for Shiba Inu, the memecoin is facing significant resistance on both technical and sentiment fronts. The current indicators and on-chain metrics suggest a need for cautious optimism.
Also Read: Shiba Inu (SHIB) Surges Amid Market Fear – 719.81% Drop In Sentiment Signals Buying Opportunity!
For SHIB to achieve a breakout, it must first overcome its existing resistance and work to improve market sentiment. Until then, the potential for sustained bullish movement remains uncertain, leaving traders and investors watching closely as the Shiba Inu saga unfolds.
As the community rallies around Shibarium’s success, all eyes will be on whether this momentum can indeed push SHIB to new heights or if it will remain tethered by resistance.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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