Shiba Inu Trapped in Stagnation Amid Weak On-Chain Activity and Low Whale Engagement

Shiba Inu (SHIB) has entered a phase of stagnation amid weak on-chain activity and limited engagement from large holders, or whales. On August 3, 2025, on-chain data showed a 24-hour transaction volume of 319.6 billion SHIB, a figure that is relatively insignificant given the token’s massive supply measured in the hundreds of trillions [1]. This low volume reflects minimal movement within the ecosystem and highlights the lack of meaningful trading activity [1]. The token is currently trading at $0.00001207, below its 200-day moving average of $0.00001448, indicating a prolonged period of weakness without a clear catalyst for recovery [1].

Whale activity, a key indicator of market direction, has also declined sharply. Large holders have largely remained inactive, with recent on-chain transactions failing to reach the previous levels of trillions of SHIB transacted daily [1]. This reduced engagement contrasts with earlier periods of speculation and highlights diminished interest from major participants [1]. The absence of whale-driven volume has contributed to a lack of liquidity, making SHIB more vulnerable to short-term volatility [1].

Technical indicators reinforce the bearish outlook. SHIB’s Relative Strength Index (RSI) is approaching oversold levels, suggesting potential undervaluation [1]. However, while this condition could signal a short-term bounce, it does not necessarily indicate a reversal in the broader trend. The token has yet to demonstrate a sustained breakout above the 200-day moving average, which remains a critical resistance level [1]. Analysts caution that without increased volume and active wallet participation, SHIB is likely to remain in a stagnant or bearish range [1].

Retail investors and traders are closely watching for signs of a potential recovery. Key indicators to monitor include a surge in transaction volume, an increase in active wallet addresses, and a confirmed price breakout above the 200-day moving average supported by strong volume [1]. These signals would suggest renewed momentum and a possible reversal of the current phase of dormancy [1]. Until such conditions materialize, SHIB’s large transaction figures remain a rounding error in the broader market, underscoring the token’s lack of significance in the context of its vast supply [1].

The overall market environment also plays a role in SHIB’s performance. The broader cryptocurrency market remains in a state of flux, with bearish sentiment persisting across major assets. In this context, SHIB’s lack of a compelling narrative beyond its meme-based origins and the absence of whale-driven momentum make it unlikely to break out of its current stagnation without a significant catalyst [1]. Investors are advised to focus on technical and on-chain metrics for early signs of change, while maintaining caution in the current environment [1].

Source:

[1] Crypto News - tradenuxtoken (https://www.tradenuxtoken.com/blog)