Can Shibarium’s 1,557% activity surge help SHIB’s price break out?

• SHIB’s MACD and RSI flashed mixed signals, with momentum lacking for a strong bullish move
• Exchange reserves fell, but trader sentiment remained rather cautious

Shiba Inu [SHIB]’s Shibarium blockchain is witnessing a remarkable 1,557% surge in active accounts and processing 1.76 million daily transactions right now. Understandably, this massive hike in on-chain activity has the SHIB community buzzing with excitement. 

However, can this activity fuel SHIB’s breakout, or will resistance continue to suppress the memecoin’s upward movement?

MACD and RSI flash mixed signals for SHIB

Looking at Shiba Inu’s MACD and RSI, there are a few important signals to consider. The MACD seemed to be showing narrowing bars, indicating that momentum may shift soon. 

However, the MACD line remained slightly below the Signal line – A sign that a bullish trend is yet to fully materialize. Additionally, Shiba Inu’s RSI lay at 51.42, underlining neutral market sentiment.

What this means is that while Shiba Inu did not seem to be in oversold territory at press time, it also lacked the momentum needed for a major rally. 

Source: TradingView

On-chain data highlights cautious sentiment

On-chain metrics further revealed why SHIB’s recent price action has been lackluster. SHIB’s net network growth had a reading of -0.22%, highlighting a slight decline in network participation. Moreover, only 0.05% of Shiba Inu holders are considered large holders, a minor bullish signal, but not significant enough to inspire confidence. 

The “In the Money” metric flashed figures of -0.63%, indicating most holders are at a slight loss.

More notably, large transactions fell down by -4.11%, suggesting that whales have been stepping back. Therefore, while there seemed to be small bullish signs, bearish overtones dominated SHIB’s on-chain outlook.

Source: IntoTheBlock

SHIB’s exchange flows and trader sentiment

At the time of writing, exchange reserves were steadily declining, sitting at 138.67T Shiba Inu tokens. Historically, a fall in exchange reserves hints at accumulation as tokens are moved off exchanges into private wallets, reducing selling pressure. 

Source: CryptoQuant

However, over the last 24 hours, SHIB’s reserve flow slightly rose by 0.02%, signaling potential short-term selling pressure. Additionally, the long/short ratio revealed that 52.05% of traders were short on SHIB – A further sign of skepticism. 

Read Shiba Inu [SHIB] Price Prediction 2024-2025

In conclusion, while Shibarium’s explosive growth presents exciting opportunities, Shiba Inu faces significant resistance – On both the technical and sentiment fronts.

A breakout is possible, but Shiba Inu must overcome its resistance and improve market sentiment, before any sustained bullish movement.