Shiba Inu (SHIB), Anomalous Signal Despite 216% On-Chain Surge...Chart Warns of Decline

▲ Shiba Inu (SHIB)/AI-generated image

Shiba Inu (SHIB) on-chain activity surged by 216%, yet its technical trend continues to show bearish signals.

According to crypto media outlet U.Today on September 16 (local time), Shiba Inu's on-chain activity related to exchange inflows increased by 216% in a short period. This metric saw an addition of 1.6 billion SHIB. U.Today analyzed that while a triple-digit increase in activity can typically raise bullish expectations, increased on-chain activity alone does not confirm additional demand.

The technical trend contradicted the on-chain indicators. Shiba Inu failed again to break through the $0.00000520-$0.00000530 range and fell below the short-term and medium-term moving averages clustered between $0.00000500 and $0.00000515. The moving average range, which previously acted as support, has now turned into resistance.

Even during the recovery process that began in July at around $0.00000410, the upward trend did not last long. In August, it rose to around $0.00000620 but failed to solidify the breakout. The September rebound also stopped at $0.00000550, forming a lower high than in August.

The long-term moving average is positioned at approximately $0.00000565, supporting the bearish structure. The Relative Strength Index (RSI) has also fallen below the neutral line of 50 and is pointing downwards. U.Today suggested $0.00000480 as a key support level. It analyzed that if this line breaks, the $0.00000460-$0.00000440 range and the July low of $0.00000410 would become important again.

Conversely, for the technical structure to improve, it must first recover the $0.00000500-$0.00000515 range and stabilize above the moving averages. Subsequently, a recovery to $0.00000550 was presented as a stronger signal to confirm a structural rebound. The analysis suggests that despite a 216% surge in on-chain activity and the addition of 1.6 billion SHIB, the technical bearish structure remains unless supported by corresponding buying pressure.

[Key Article Summary]

-Shiba Inu's on-chain activity related to exchange inflows increased by 216%, with 1.6 billion SHIB added to this metric.

-Shiba Inu has fallen below the short-term and medium-term moving averages, and the Relative Strength Index is also pointing downwards below 50.

-U.Today analyzed that the surge in on-chain activity alone is not enough to reverse the technical bearish structure.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*