As a researcher with a background in cryptocurrency and blockchain technology, I’ve been closely monitoring the developments within the Shiba Inu (SHIB) ecosystem. The recent price drop of 2% on July 12, coupled with declines in key metrics on the Shibarium network, has piqued my interest.
TL;DR
- Shiba Inu (SHIB) saw a 2% price drop on July 12, along with declines in key metrics on the Shibarium network.
Despite the downturn, technical analysis tools suggest a potential near-term price rebound.
Indicators on a Downfall
The second-largest meme coin in terms of market capitalization—Shiba Inu—managed to recover some of the losses incurred during the market correction at the end of last week, with its price surging by over 22% on a 7-day scale. However, SHIB flashed red again today (July 12), plunging by 2% (per Coingecko’s data).
The price drop for Shiba Inu aligns with a decline in significant metrics within its ecosystem, primarily affecting Shibarium, its layer-2 blockchain solution. Notably, daily transactions on the network have decreased to 4,429, representing a 26% reduction compared to the previous day’s figure.
In the past 24 hours, there has been a significant decrease of 67% in the number of blocks processed, amounting to a total of only 136. Similarly, the number of active accounts has dropped by nearly 80%, resulting in a substantial reduction.
As a crypto investor, I’m excited to share that Shibarium, the layer-2 solution of Shiba Inu, was launched last August with the goal of setting Shiba Inu apart from other meme coins. By reducing transaction costs, increasing speed, and enhancing scalability, Shibarium aims to make SHIB a more attractive investment choice. According to many industry experts, the continued development of Shibarium is essential for a potential price surge in SHIB.
In March this year, daily transactions on the protocol were in the millions, coinciding with the rallying Shiba Inu valuation, which hit a two-year high.
To stay informed about the latest developments in our ecosystem, please visit our Shibarium news segment. For a deeper understanding of our L2 scaling solution and its key features, you may find our accompanying video insightful.
Is It Time for a New SHIB Bull Run?
As an analyst, I’ve noticed that although the meme coin is currently showing a slight deficit in its price today, some technical indicators are signaling the potential for a forthcoming surge.
The SHIB Relative Strength Index (RSI), a gauge used to determine the speed and magnitude of price movements, has recently reached a three-month low of 12.8. Generally, an RSI reading above 70 signals that an asset is overbought, potentially signaling a correction. Conversely, a score below 30 may indicate that the asset is oversold and ripe for a price recovery.
As an analyst, I believe observing Shiba Inu’s exchange netflow is crucial. In the past week, outflows have significantly exceeded inflows, indicating a potential trend towards self-custody methods instead of relying on centralized platforms. This shift is considered bullish because it decreases immediate selling pressure.
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2024-07-12 08:42