Shiba Inu trading activity jumps 351%, tests 200-day moving average

Recent price action and volatility

Shiba Inu’s price trajectory has been turbulent. The token initially faced a sharp rejection above $0.00000620, triggering a rapid decline. After falling as low as $0.00000555, Shiba Inu stabilized and was last seen trading near $0.00000589.

On September 23, SHIB lost 7.69% after hitting $0.00000624. However, a 2.3% price recovery followed the next day, reflecting a rebound in buying interest. Despite these moves, trading volumes have remained elevated compared to earlier sessions in September.

Shiba Inu’s activity spike signals the start of another period of pronounced price volatility, arriving shortly after the token’s attempt to consolidate above $0.00000620 failed to hold.

Technical indicators currently highlight significant volatility. The Relative Strength Index (RSI) stands in neutral territory, suggesting that the price is neither overbought nor oversold and leaving room for further movement in either direction.

Focus on technical support and resistance

One key technical development is Shiba Inu’s move above its 200-day moving average after spending several months below this long-term indicator near $0.0000056. A recent adjustment brought the price back to test this area, but it managed to hold without a sustained breakdown.

This development may indicate that the 200-day moving average, currently between $0.0000056 and $0.0000057, could now act as a critical support zone for the token. Maintaining price levels above this range keeps the September recovery structure intact.

The first resistance for bullish traders is found at $0.0000060. Sustained upward momentum could push Shiba Inu into the $0.0000062 to $0.0000063 range, where a higher high above the August peak would potentially be established.

If the price fails to defend the 200-day average, downward targets may emerge at $0.0000054, then at the moving average cluster around $0.0000051–$0.0000052. This places the 351% intraday activity spike at a crucial juncture for price direction.

Uncertainty remains amid structural improvement

While Shiba Inu’s recent structural performance has improved due to sustained support above key technical levels, market direction remains uncertain. The continued high volatility and fluctuating activity levels underscore the lack of a clear trend.

Shiba Inu is a meme-inspired cryptocurrency developed on the Ethereum blockchain. The asset’s popularity often leads to volatile price movements driven by community sentiment, technical factors, and overall market conditions.

Mini dictionary: 200-day moving average, a widely followed long-term trend indicator in technical analysis that helps determine whether an asset is in an overall uptrend or downtrend. Remaining above this indicator can suggest sustained recovery, while a drop below may indicate further weakness.