According to CryptoPotato, Shiba Inu (SHIB), the second-largest meme coin in terms of market capitalization, experienced a 2% price drop on July 12. This coincided with declines in key metrics on the Shibarium network, the layer-2 blockchain solution linked to Shiba Inu. Despite the downturn, technical analysis tools suggest a potential near-term price rebound.
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, on July 12, SHIB's price dropped by 2%. This price retreat coincided with the decline of some important metrics in Shiba Inu’s ecosystem. 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. 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.
Despite being slightly in the red, 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. 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.
