- SHIB remains bearish, but oversold RSI signals possible short-term relief bounce.
- Network activity and active wallets increase despite ongoing price weakness and selling pressure.
- Key support near $0.00000470 holds, with resistance around $0.00000520 limiting recovery.
Shiba Inu continues to struggle after weeks of steady downside pressure across the charts. The token now trades near $0.00000470, sitting on a key support zone that previously triggered minor rebounds. Sellers still control the broader trend, and every upward attempt meets renewed pressure. Despite this, underlying data paints a more complex picture. Network activity is rising while price stays weak. That divergence has sparked debate among traders about whether a short-term recovery bounce may be forming.
Bears Still Control the Chart, But Momentum Is Slowing
Chart structure remains clearly bearish across lower and higher timeframes. On the 4-hour chart, SHIB trades below the 100-period moving average at $0.00000527. Price action continues forming lower highs and lower lows, showing sellers dominate short-term direction. However, downside momentum appears to slow slightly during recent sessions. The Relative Strength Index sits near 44.40, drifting closer to oversold territory.
Earlier periods already pushed RSI into weaker zones for extended stretches. That condition often signals exhaustion among sellers, even when trend direction remains intact. On the daily chart, conditions look even more stretched. SHIB lost support near the 100 SMA at $0.00000585, confirming a deeper correction phase. Daily RSI dropped to 26.69, marking oversold territory. That reading does not guarantee reversal, yet often precedes relief moves.
Markets rarely move in one direction without pauses. In many cases, oversold conditions trigger short rebounds before the next major trend forms. Key support now sits between $0.00000470 and $0.00000480. Holding this zone could open a path toward $0.00000520. A breakdown below support risks deeper losses toward $0.00000440. Traders now watch this range closely for confirmation of direction.
On-chain Strength Builds While Price Weakens
While price action struggles, on-chain activity tells a different story. Network usage continues to rise across multiple metrics. Daily transfers increased from roughly 1,500 to more than 3,800. That marks one of the strongest activity spikes in recent periods. Active wallet participation also improved. Address counts climbed from about 900 to nearly 2,300. This signals growing engagement even during market weakness.
Such divergence often appears when accumulation quietly builds beneath the surface. Supply-side conditions also shift in a supportive direction. Roughly 1.91 trillion SHIB tokens moved off exchanges within 24 hours. Lower exchange balances reduce immediate selling pressure. Burn activity surged more than 1,000%, removing additional supply from circulation. Large holder activity still creates occasional volatility.
A transfer involving 400 billion SHIB reminded traders that whale movements can disrupt short-term stability. Even so, reduced exchange supply and ongoing burns support a tighter market structure over time. Ecosystem development also continues. Shibarium upgrades and the Shib Alpha Layer aim to improve speed and usability. TokenPlayAI progress adds an artificial intelligence angle, with upcoming technical updates expected.
