SHIB jumps 4% as daily volume hits 25.77T, highest since January.
Price holds above $0.000013 support, signaling bullish double-bottom.
RSI at 42 suggests momentum lag despite strong on-chain activity.
Shiba Inu price recorded a 4% price increase on June 7 as daily transaction volumes surged to the highest levels in five months per CoinMarketCap’s data. Concerns were raised among investors when prices went down, but the recovery showed confidence in the market. Santiment’s data confirms that the activity on the network rose sharply at the time. Greater transactions suggest more people are looking at SHIB as it tries to maintain a key support level.
Shiba Inu Price Holds Above Crucial Support
At $0.0000128 the price has experienced a strong recovery from its weakest point this week. The token reached a daily peak of $0.0000128 after starting at $0.0000122. The recent market movement demonstrates growing volatility which may affect the immediate future direction of prices.
Shiba Inu has maintained its position above the $0.000013 support level, a zone that previously triggered a rally in early April. Price action over the past two weeks has been under pressure, largely in line with the broader meme coin market. Despite these challenges, the weekly chart still reflects a bullish double-bottom pattern that remains valid as long as the support holds.
If the price maintains above this crucial threshold, the next resistance stands at $0.000032. Crossing this level could open the way for a sustained move toward the $0.000045 target. The structure on the higher timeframe shows potential for reversal from the recent bearish trend, contingent on steady buying support.
Transaction Volumes Signal Potential Shift in Market Sentiment
On June 5, SHIB's daily transaction volumes surged to 25.77 trillion, marking the highest recorded since January. A day later, June 6, volumes remained elevated at 18.68 trillion. The continued growth suggests traders are beginning to change their strategies.
A significant increase in activity has occurred at the same time as heightened volatility which typically indicates upcoming substantial price changes. Moreover, the surge also suggests potential capitulation among long-term holders. Analysis of the Age Consumed metric shows that older tokens are being moved again, which typically precedes price reversals.
Increased on-chain activity reflects changing market dynamics, with SHIB possibly transitioning from consolidation to accumulation. These developments indicate that buyers may be preparing for a more aggressive stance if favorable technical conditions emerge.
Momentum Indicators Highlight the Need for Caution
Despite the positive signals, the Relative Strength Index remains below 50, currently at 42. This indicates that buying momentum is still not dominant. For the bullish double-bottom pattern to confirm a breakout, the RSI would need to move above the neutral threshold.
The forthcoming trading sessions will hold significant importance while traders evaluate if SHIB maintains its support level alongside attracting additional interest. Continuous trading volume together with momentum changes may create conditions that allow SHIB to reach the expected price of $0.000045.
