The second-largest meme coin in terms of market capitalization, Shiba Inu, recently recovered some losses from a previous market correction, with a 22% price surge over the past 7 days. However, SHIB’s price fell by 2% on July 12 according to Coingecko.
This price decline is aligned with a decrease in critical metrics within the Shiba Inu ecosystem, particularly on the Shibarium layer-2 blockchain network. Daily transactions on the network dropped by 26% to 4,429, while total blocks processed in 24 hours fell by 67% and active accounts decreased by almost 80% to 136.
Shibarium was launched in August last year to enhance Shiba Inu’s position among meme coins by reducing transaction costs, improving speed, and scalability. Experts believe that its further development is vital for a potential SHIB price recovery.
Earlier this year, daily transactions on the platform reached millions during a period when Shiba Inu’s value surged to a two-year high.
For more information on the ecosystem, visit our Shibarium news section. To learn more about the L2 scaling solution, watch our dedicated video below:
Is It Time for a New SHIB Bull Run?
Despite a slight price decrease, technical analysis signals indicate a potential upcoming rally for this meme coin.
The SHIB Relative Strength Index (RSI), which gauges price movement speed and changes, hit a three-month low of 12.8. An RSI above 70 suggests overbought conditions, while below 30 may indicate a pending price increase.
SHIB’s exchange netflow is another critical metric to monitor. Recent outflows exceeding inflows indicate a shift from centralized platforms to self-custody methods, which is seen as a bullish sign since it reduces immediate selling pressure.
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