Shiba Inu (SHIB ($0.00)) is witnessing a notable increase in market activity, as on-chain data reveals a dramatic 450% rise in whale transactions. According to IntoTheBlock, the number of transfers involving amounts between $1 million and $10 million has surged over the past 90 days. This aggressive whale behavior often signals potential price volatility, either upward or downward, depending on broader sentiment and market volume.

SHIB Struggles Below Key Resistance

Despite breaking above the 200-day Exponential Moving Average (EMA) recently, SHIB now faces difficulty sustaining momentum. It currently trades just under the crucial $0.000016 resistance zone, a historically stubborn level for the token. At present, SHIB hovers around $0.000015 and risks slipping back if this level fails to hold. 

Source: Tradingview

A drop toward the support zones at $0.00001420 or even $0.00001310 becomes more likely if buyers do not step in with conviction.Although the spike in whale activity appears bullish on the surface, concerns remain regarding its sustainability. 

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Market observers question whether this accumulation stems from genuine retail interest or speculative maneuvering. The inconsistent volume patterns and elevated volatility suggest that SHIB’s rally may lack strong foundational support from the broader investor base.

Bullish Momentum Requires Volume Confirmation

To regain upward momentum, SHIB must close several consecutive trading sessions above the 200 EMA, ideally with rising volume. If that happens, the token could aim for the $0.000018 to $0.000020 price range. However, this scenario depends heavily on sustained buyer interest and overall market conditions.

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Following its recent run-up, SHIB shows signs of exhaustion. The Relative Strength Index (RSI) has started to decline from overbought levels, hinting at weakening bullish pressure. This trend could indicate a local top forming, especially if SHIB fails to attract new inflows.

SHIB currently stands at a pivotal juncture. While the 450% increase in whale transactions suggests bullish intent, the lack of consistent volume casts doubt on its durability. If SHIB cannot hold above $0.000015 with renewed momentum, the rally could quickly flip into a distribution phase. Traders should closely monitor this level, as it represents the immediate battleground for SHIB’s next major move.

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