Shiba Inu’s transaction volume just surged to a weekly high of 7.37 trillion SHIB in a 24-hour period. Similar surges in network activity have historically predicted times of high price volatility, and recent on-chain data indicates that we might be about to witness another significant shift.
Based on price action, SHIB is currently holding at $0.00001270, which is a critical support level. For a number of weeks, this horizontal zone has served as a floor, and the asset has already bounced off it a few times. Interestingly this level provides dual-layered support by being in line with the 50 EMA. However, the strain is increasing. Volatility is practically a given with the explosion of network activity and the surge in transaction volumes.
The 100 EMA is currently located at the $0.00001400 resistance, and we could see a breakout above if this momentum carries over into price action. SHIB has not touched the 200 EMA in months, and it is currently hovering around $0.00001620. A clean breach of that level opens the path to that level. However, there is no assurance that the explosion will go upward.
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The technicals and fundamentals point to a bullish eruption, but if the support at $0.00001270 is not maintained, SHIB may plunge toward the lower boundary at $0.00001100, erasing recent accumulation gains and invalidating the bullish setup. Traders should brace themselves for high-velocity swings in either direction, as volatility is raging and 7.37 trillion SHIB were moved in a single day.
SHIB may eventually break out of its range of stagnation and attempt to regain annual highs if buying pressure follows this spike in volume. The possibility of a steep drop is also present if the move becomes a distribution trap.