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 retreat coincides with the decline of some important metrics in Shiba Inu’s ecosystem. The majority of those are linked to the layer-2 blockchain solution, Shibarium. Data shows that daily transactions on the network have decreased to 4,429 (a 26% pullback compared to the figure observed the day before).
The total blocks processed on a 24-hour basis have tumbled by 67%, while active accounts dropped by almost 80%, reaching just 136.
Shibarium officially went live in August last year, aiming to elevate Shiba Inu above its rivals in the meme coin realm by lowering transaction costs, improving speed, and enhancing scalability. According to some experts, its further advancement is crucial for a potential SHIB price resurgence.
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.
For more updates on the ecosystem, make sure to check out our Shibarium news section. Additionally, those willing to learn more about the L2 scaling solution and its main specifics, feel free to take a look at our dedicated video below:
Is It Time for a New SHIB Bull Run?
Despite being slightly in the red today, some technical analysis indicators suggest that the meme coin’s price might be gearing up for a fresh 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 of above 70 typically indicates that the asset is overbought, warning about a possible correction. An RSI below 30 suggests it might be due for a price rebound.
Shiba Inu’s exchange netflow is another essential metric worth observing. Outflows have considerably surpassed inflows in the past week, signaling a possible shift from centralized platforms toward self-custody methods. This is considered bullish since it reduces the immediate selling pressure.