Shiba Inu Faces Price Drop Despite Recent Gains

Shiba Inu Price Slumps Despite Recent Surge

Shiba Inu (SHIB), the second-largest memecoin by market capitalization, experienced a significant price increase recently. However, in the past 24 hours, it has plummeted by 4.5%. This decline coincides with a drop in active accounts and daily transactions on the Shibarium network.

Factors Contributing to the Price Drop

• Shibarium Ecosystem Metrics Decline: The number of active accounts on Shibarium has dropped from 631 on July 17th to 209 on July 18th. Daily transactions have also decreased noticeably.
• Memecoin Market Correction: The broader memecoin market has also experienced declines, with significant losses seen in Dogecoin (DOGE), Pepe (PEPE), Bonk Inu (BONK), and Floki Inu (FLOKI).

Potential Resurgence of SHIB

Despite the recent price drop, certain data points suggest that SHIB could experience a potential resurgence:

• Reduced Selling Pressure: According to CryptoQuant, the net flow in the SHIB market has been largely negative over the past week. This shift towards self-custody methods is typically seen as bullish, as it reduces immediate selling pressure.
• Shibarium Progress: Shibarium, designed to enhance the Shiba Inu ecosystem, has made progress in the past few months. Industry experts believe further advancements are crucial for SHIB's potential price appreciation.
• User Interface Enhancements: The Shibarium team has implemented significant upgrades, including a new user interface that is faster, smoother, and more accessible. This aims to improve compatibility with popular wallets like MetaMask, Coinbase Wallet, and Trust Wallet.

Conclusion

Shiba Inu's recent price drop can be attributed to both ecosystem-specific factors and a decline in the broader memecoin market. However, indicators suggest that SHIB may experience a potential resurgence in the future due to reduced selling pressure and continued development of the Shibarium ecosystem.