216% Shiba Inu (SHIB) Outbreak: 1.6 Billion Tokens Added

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.

SHIB/USDT Chart by TradingView

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.