Shiba Inu (SHIB) Network Activity Drops by Up to 79.55%

Despite the slowdown in transactions, Shiba Inu's exchange reserves surged to a new weekly high on the charts. This means that more SHIB tokens are being deposited on exchanges, likely for selling.

Shiba Inu (SHIB) has experienced a significant decline in network activity over the last 24 hours, according to CryptoQuant data. SHIB token transfers have fallen by as much as 79.55%, while active transacting wallet addresses have decreased by 33.68%.

This lack of activity could be attributed to low demand for the memecoin across the network. However, despite the slowdown in transactions, Shiba Inu's exchange reserves have surged to a new weekly high.

This surge in exchange reserves, typically indicates an increase in selling pressure as market participants deposit their SHIB tokens on exchanges, presumably to sell.

The combination of declining network activity and rising exchange reserves bodes poorly for the short-term price prospects of Shiba Inu. As the saying goes, "the trend is our friend."

As of press time, SHIB is changing hands at $0.00001223. The technical structure of the memecoin remains bearish overall.

If the price fails to hold onto the critical support zone, it could slide further to test $0.00001095 as a zone of demand.

However, breaking below this level could lead to further downside movement. With the stochastic RSI still within the overbought zone, the chances of a successful reversal will narrow.

The next move for Shiba Inu depends on how market participants respond to these market conditions. If there is a pickup in buying activity at key support zones, we might see a short-term rebound.

But with selling pressure intensifying and exchange reserves rising, the likelihood of further decline remains high unless we see improvement in demand.

Keep an eye on $0.00001223 and $0.00001095 as key price levels that could determine the next move for SHIB.