Shiba Inu, one of the top meme coins by market capitalization, experienced a 2% drop in price on July 12, accompanied by a decrease in key metrics on the Shibarium network. Despite this setback, technical analysis tools are indicating a potential rebound in the price in the near future.
The recent price decline of SHIB comes after a period of recovery where the coin saw a 22% surge over the past week. However, according to Coingecko’s data, the price dropped by 2% on July 12. This decline in price aligns with a decrease in important metrics within the Shiba Inu ecosystem, particularly on the Shibarium network.
Data reveals that daily transactions on the network have fallen by 26% to 4,429, while the total blocks processed in a day have decreased by 67%. Active accounts on the network have also dropped by almost 80%, reaching a mere 136. Shibarium was launched last year with the goal of improving transaction efficiency, speed, and scalability for Shiba Inu. Experts believe that the progress of Shibarium is essential for a potential price increase in SHIB.
In March of this year, when daily transactions on the protocol were in the millions, Shiba Inu’s value surged to a two-year high. For more updates on the Shibarium ecosystem, readers can refer to the dedicated news section. Additionally, those interested in learning more about the L2 scaling solution can watch the dedicated video provided.
Despite the recent price decline, technical analysis indicators are suggesting the possibility of a new rally for SHIB in the near future. The Relative Strength Index (RSI) for SHIB hit a three-month low of 12.8, indicating a potential price rebound as an RSI below 30 suggests. Additionally, the exchange netflow for SHIB has shown more outflows than inflows in the past week, indicating a shift towards self-custody methods and reducing immediate selling pressure.
Overall, while Shiba Inu has experienced a recent price drop along with declining metrics on the Shibarium network, there are signs pointing towards a potential price rebound in the near future. Investors and enthusiasts of SHIB will need to keep a close eye on technical indicators and ecosystem developments to gauge the coin’s future performance.