Despite low prices, Shiba Inu is showing mixed signals, with large transaction volumes indicating vigorous network activity.
Shiba Inu burn rate increased by 59% in the last 24 hours.
On the daily chart, Shiba Inu is up around 1.2%, while the broader market is up 1%.
The ongoing consolidation and the chart's oversold RSI indicate that a reversal might be inbound.
Analyst SHIB Knight sees a buying opportunity in the weekly timeframe and says the bulls need to kickstart an uptrend.
This week in particular, Shiba Inu has seen a massive shift in its on-chain dynamics, and analysts are starting to speculate.
According to data from IntoTheBlock, the number of significant transactions carried out on the network has spiked over the last seven days.
Coupled with some interesting in/out of the money statistics, it might be safe to assume that Shiba Inu is already working on a recovery.
But where might a proper “buy zone “be on this memecoin?
According to data from Into the Block, the volume of large transactions on the Shiba Inu network has been spiking recently.
IntoTheBlock data shows that the large transaction volumes reached more than 1.5 trillion tokens this week, and the large transaction volume for SHIB reached a staggering 1.55 trillion tokens, all of which are worth around $26.53 million.
This is significantly lower than the number and volume of large transactions we saw throughout most of early June. However, it also indicates health in terms of the memecoin's on-chain activity.
Shiba Inu’s large transaction volume
This week, according to insights from the official Shibburn Twitter account, we also had some exciting burn rate details.
According to Shib Burn, the memecoin’s burn rates have surged by around 59% over the past 24 hours, with a total of 17,648,859 SHIB tokens burned across seven transactions.
According to data from CoinMarketCap, Shiba Inu is green on the daily timeframe and rose by 1.2% in the 24 hours before writing, compared to a 3.2% price decline on the weekly timeframe.
Shiba Inu’s price
The cryptocurrency now trades at around $0.000017233 amid a broader market increase of around 1% in terms of market cap.
This means that despite Shiba Inu's ongoing slump on the weekly timeframe, this memecoin is outperforming the rest of the market combined on the daily.
The charts show that Shiba Inu is currently consolidating between $0.00001686 and $0.00001830 after declining from its March 5 peak of $0.00004567.
Shiba Inu in the charts
The RSI also shows that the cryptocurrency is oversold. Coupled with its consolidation at strong price support, the odds favour a rebound from $0.00001686.
Analyst SHIB Knight also supports this outlook.
According to a post from earlier this week, the analyst told his 400k+ followers that $SHIB is currently sitting in a "buy zone" on the weekly chart and that the bulls need to defend this zone to establish an uptrend.
Looking ahead, though, the upcoming launch of the spot Ethereum ETFs between June 2 and June 4 is expected to boost Shiba Inu's price, considering the expected increase in the memecoin's demand and volume.
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