Vital Shiba Inu Metric Tumbles as SHIB Retraces – Bearish Phase Ahead?

Amid a broader market correction, Shiba Inu has witnessed a significant price decline, dropping 22% in the past week. SHIB traded at $0.00001596, with a 5.8% 24-hour decrease. 

Amid this downturn, vital network metrics in the SHIB ecosystem have also plummeted. Data reveals that Shibarium’s daily transactions have dropped to 4,429, marking a 26% drop compared to previous figures.

In addition, the total blocks processed within 24 hours dropped by 67%, with active accounts declining by approximately 80% to a meager 138.

Shibarium Metrics Decline as Shiba Inu Struggles Today

Shibarium, an Ethereum layer-2 scaling solution launched in August 2023, was built to distinguish Shiba Inu from its other meme coin rivals.

Buckle up #SHIBARMY 🛸 Shibarium is officially live and ready to explore: https://t.co/56VsqOa2jt

— Shib (@Shibtoken) August 16, 2023

The network developers designed Shibarium to lower transaction fees, boost scalability, and improve speed. Experts said Shibarium’s advancements are crucial for Shiba Inu’s potential price increase.

The protocol’s transaction volume rose to millions in March this year. The high transaction rate coincided with Shiba Inu’s price surge as it raced to a two-year high. Hence, one may conclude that Shibarium advancements contributed to SHIB’s price gains by enhancing Shiba Inu ecosystem activity.

Shibarium Records Over 200M Processed Transactions; SRC-20 Tokens On The Network Now Support $SHIB Burns https://t.co/BHCjXnQ0oC

— 𝐋𝐔𝐂𝐈𝐄 (@LucieSHIB) December 27, 2023

Meanwhile, Shiba Inu’s exchange net flow revealed that outflows have surpassed inflows in the past week.

The increased outflows indicate a possible shift by investors from centralized exchange to self-custody for SHIB. Increased exchange outflow is typically a bullish signal because it often reduces the selling pressure for a crypto asset.

Shiba Inu, Lead Developer, Remains Positive about SHIB’s Future 

Despite SHIB’s bearish outlook, its developers continue to develop innovative plans. In an interview with Arab Business, lead developer Shytoshi Kusama discussed plans to transform Shiba Inu into the first trillion-dollar decentralized entity.

Thanks to @ArabianBusiness for this exclusive peek into @kaaldhairya and I. Share far and wide #SHIBARMY as we move into finishing this decentralized experiment. https://t.co/KZqTrGJWRH

— Shytoshi Kusama™ (@ShytoshiKusama) July 12, 2024

He believes that Shiba Inu will rise to a market cap value of $1 trillion, leading to a massive rally. Kusama notes that an increase in global crypto adoption from less than 5% will help Shiba Inu achieve the $1 trillion goal.

In a recent X post, Kusama described Shiba Inu as a puppy, stating that it is still in its infancy and has room to grow. Although the lead developer keeps his identity a secret, he promotes Shiba Inu as a global asset.

Shiba Inu’s daily price chart provides valuable insights into the next possible price move in the short term.

SHIB’s Price Outlook Today

SHIB has formed a Doji pattern on the daily chart, which indicates a possible price reversal ahead. Notably, SHIB found support at $0.00001565, preventing further decline in the past week. 

However, the $0.00001667 resistance has limited Shiba Inu’s price ascent since July 8. The meme coin trades above the median band of the Donchian Channel (DC), confirming a possible trend reversal.

Also, the RSI is 41.74, rising from the neutral zone. So, if the bulls sustain momentum, a re-test of the $0.00001667 price level in the coming days, which might restart the rally, is possible. If SHIB overcomes the $0.00001667 resistance level, $0.00001700 could be the next price target.