Key Shiba Inu Metrics Plummet as SHIB Price Heads South: Details

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 decline, technical analysis tools suggest a potential price rally in the near term. Indicators of a fall

The second largest meme coin by market cap, Shiba Inu, managed to recoup some of the losses incurred during the market correction at the end of last week, with its price increasing by more than 22% in a 7 day scale. However, SHIB flashed red again today (July 12), falling 2% (according to Coingecko data).

The price drop coincides with a decline in some important metrics in the Shiba Inu ecosystem. Most of them are linked to the Layer 2 blockchain solution, Shibarium. The data shows that daily transactions on the network have decreased to 4,429 (a 26% drop from the figure seen the previous day).

Total blocks processed in 24 hours dropped by 67%, while active accounts dropped by almost 80% to just 136.

Shibarium was officially launched in August of last year, with the aim of elevating Shiba Inu above its rivals in the realm of meme coins by reducing transaction costs, improving speed and improving the ‘scalability. According to some experts, its further progress is crucial for a possible resurgence in SHIB prices.

In March of this year, the protocol’s daily transactions were in the millions, coinciding with the rebound in Shiba Inu’s valuation, which reached a two-year high.

For more updates on the ecosystem, be sure to check out our Shibarium News section. Also, those who want to learn more about the L2 scaling solution and its main features, feel free to check out our dedicated video below:

Time for a new SHIB Bull Run?

Despite being slightly in the red today, some technical analysis indicators suggest that the price of the meme coin could be preparing for another rally in the near future.

The SHIB Relative Strength Index (RSI), which measures the speed and change of price movements, recently hit a three-month low with a score of 12.8. A ratio above 70 usually indicates that the asset is overbought, warning of a possible correction. An RSI below 30 suggests that it could be due to a price rally.

Shiba Inu net exchange flow is another essential metric worth watching. Outflows have greatly outpaced inflows in the past week, indicating a possible shift from centralized platforms to self-custody methods. This is considered bullish as it reduces immediate selling pressure.

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