3.4 Trillion Shiba Inu (SHIB) in 7 Days, But It Is Not Enough

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Despite a remarkable transaction volume of over three trillion SHIB in the last week, Shiba Inu does not appear to have received the boost it needs to return to its previous level of strength. According to on-chain data, there has been a weekly high of 209 large transactions, although the number has been fluctuating.

In spite of this, SHIB's price performance has not kept pace with the rise in transaction volume. Although 1.27 trillion SHIB has been exchanged in the past day alone, the price of SHIB is still struggling. The chart shows a downward trend, with SHIB trading at about $0.00001767 at the moment. Despite increased activity, there are indications that there will not be an immediate recovery. 

SHIB/USDT Chart by TradingView

Many things might be at work here, such as the mood of the market as a whole or the fact that the sheer number of major transactions suggests distribution rather than accumulation. With the asset hovering just above the 100 EMA (Exponential Moving Average), support levels for SHIB are now becoming quite important.

The chart indicates that the next possible support would be around the $0.00001630 mark if SHIB is unable to hold above the $0.000017 level. If the asset is unable to continue on its current trajectory, there is still a chance of a downward breakout. This discrepancy between price recovery and transaction volume suggests that on-chain activity might not be enough to propel SHIB back to its prior highs.

The high volume of transactions indicates that the network is still active, but this does not always indicate that the token is experiencing bullish momentum. Future price movements for SHIB are probably going to be influenced by general market trends, as well as whether new buying demand can materialize in the upcoming weeks.