Shiba Inu (SHIB) has experienced a notable downturn amidst a broader market correction, with its price declining by 22% over the past week. As of the latest update, SHIB is trading at $0.00001596, reflecting a 5.8% decrease over the past 24 hours.
Alongside the price drop, critical network metrics within the SHIB ecosystem have also seen significant declines. Shibarium, a layer-2 scaling solution launched in August 2023 to enhance transaction efficiency and scalability, reported a sharp decrease in daily transactions by 26%. The total blocks processed within 24 hours plummeted by 67%, while active accounts dwindled by approximately 80% to just 138.
Shiba Inu’s developers had positioned Shibarium’s advancements as crucial for the cryptocurrency’s ecosystem growth and potential price appreciation. In the past, Shibarium’s performance had correlated positively with SHIB’s price movements, particularly during periods of heightened transaction volumes.
Shiba Inu (SHIB) Faces Downturn Amidst Market Correction and Network Metric Declines
Recent data on SHIB’s exchange net flow indicates increased outflows compared to inflows, suggesting a shift towards self-custody among investors. Such outflows typically signal reduced selling pressure and can be interpreted as a bullish indicator for the cryptocurrency.
Despite the prevailing bearish sentiment, Shytoshi Kusama, Shiba Inu’s lead developer, maintains a positive outlook on the cryptocurrency’s future. In a recent interview, Kusama articulated ambitious goals to transform Shiba Inu into a trillion-dollar decentralized entity, highlighting the potential benefits stemming from the growing global adoption of cryptocurrencies.
Looking at SHIB’s current price outlook, technical indicators suggest a cautious stance. The cryptocurrency recently formed a Doji pattern on its daily chart, hinting at a potential price reversal.
SHIB’s price found support at $0.00001565 after recent declines, with resistance noted at $0.00001667 hindering further upward movement. If bullish momentum persists, SHIB could retest the $0.00001667 level and potentially target $0.00001700 as the next resistance level.
Shiba Inu faces challenges amidst broader market volatility and internal network metric declines. However, developments such as Shibarium and strategic shifts in investor behavior towards self-custody offer potential pathways for SHIB’s recovery and future growth, as envisioned by its lead developer.
