Shiba Inu Signals Shift Toward Utility as Shibarium Activity Slows

Shiba Inu is flashing mixed signals right now, leaving investors confused. While its Layer-2 network Shibarium shows low activity, selling pressure rises.

On the flip side, strong bullish sentiment and a technical breakout hint at something bigger building. Is this the calm before another rally, or an early warning sign for $SHIB holders?

Shibarium Activity Drops Sharply

The recent performance of Shibarium shows a clear slowdown in network usage. Over the past 24 hours, the network processed just 1,002 transactions, generating only $0.0017 in fees.

Such low activity suggests that while the network is active, it is not yet seeing strong real usage or economic demand. Most transactions are system-level operations, not direct user transfers, indicating that the network is still stabilizing after its recent reset and re-indexing process.

This decline is part of a broader trend. Daily transactions have dropped sharply, falling more than 60% from 3,010 at the end of April to nearly 1,200 in early May.

429 Billion $SHIB Moves to Exchanges

At the same time, on-chain data shows a major shift in token movement. Over 429 billion $SHIB tokens have flowed through exchanges in just 24 hours.

Exchange reserves now stand at around 81.7 trillion $SHIB, which typically signals that holders may be preparing to sell rather than hold long-term.

This rise in supply on exchanges increases the risk of short-term selling pressure and could limit immediate price gains.

Shib Price Holds Strong Despite Weak Data

Despite these concerns, $SHIB’s price remains relatively stable. The token price is currently trading near $0.0000062, with 1.3% daily gains.

Interestingly, market sentiment remains strong, with bullish outlooks hovering near 68%, suggesting investors are still optimistic about the project’s long-term direction.

Shiba Inu Price Analysis

From a technical standpoint, $SHIB is showing early signs of recovery. Looking at the 1-day price chart, Shib has broken above a descending channel and the 100-day moving average, indicating improving momentum.

If this breakout holds, the next key resistance level is near $0.00001517, followed by a larger target around $0.0000330. However, confirmation is still needed.

Meanwhile, a failure to hold above the breakout zone could lead to a pullback before any sustained rally.