Amidst a broader market correction, Shiba Inu (SHIB) has experienced a significant downturn, seeing its price drop by 22% over the past week to $0.00001596, with a 5.8% decrease in the last 24 hours. Concurrently, key metrics within the SHIB ecosystem have also sharply declined.
Shibarium, the Ethereum layer-2 scaling solution launched to distinguish SHIB from other meme coins, witnessed a 26% drop in daily transactions to 4,429. Moreover, the total blocks processed in 24 hours fell by 67%, with active accounts plummeting approximately 80% to just 138.
Shiba Inu’s developers had designed Shibarium to reduce transaction fees, enhance scalability, and improve transaction speed, aiming to bolster SHIB’s ecosystem activity and potentially drive price increases.
Earlier this year, high transaction volumes on Shibarium coincided with SHIB’s price surge to a two-year high, suggesting a positive impact on SHIB’s market performance.
Despite recent bearish trends, SHIB has seen increased outflows from centralized exchanges to self-custody wallets, a shift typically interpreted as bullish due to reduced selling pressure. This movement aligns with broader crypto market behavior during corrections.
Lead developer Shytoshi Kusama remains optimistic about SHIB’s future, envisioning its evolution into a trillion-dollar decentralized entity, driven by global crypto adoption. Kusama, though maintaining anonymity, has been vocal about SHIB’s potential and ongoing development efforts to position it as a significant player in the crypto landscape.
Technical analysis of SHIB’s price action shows a Doji pattern on the daily chart, hinting at a potential price reversal. Despite finding support at $0.00001565, SHIB faces resistance at $0.00001667, hindering further upward movement.
The Relative Strength Index (RSI) at 41.74 suggests a possible trend reversal if bullish momentum persists, potentially re-testing the $0.00001667 resistance and aiming for $0.00001700 thereafter.
While Shiba Inu contends with recent price declines and network metric reductions, ongoing developments in Shibarium and strategic shifts in investor behavior may influence SHIB’s future trajectory amid a fluctuating crypto market landscape.
