TL;DR

Shiba Inu (SHIB) saw a minor daily price increase and significant growth in transactions and new contracts on the Shibarium network. Despite the overall bullish conditions, one analyst warned about a potential 10% price drop.

SHIBs Revival

The cryptocurrency market has flashed green in the past 24 hours, with multiple digital assets charting substantial gains. The popular meme coin Shiba Inu is among those, witnessing a 3% increase and currently hovering at around $0.0000167 (per CoinGeckos data).

The resurgence coincides with some important SHIB-related indicators that have headed north, too. Data shows that the number of new daily transactions on the layer-2 blockchain solution Shibarium has jumped by 15%, reaching almost 6,000 on July 25. New contracts have skyrocketed by 350% from just 8 on July 24 to 36 a day later.

Shibarium officially went live in August 2023, and it is primarily aimed at fostering the development of the Shiba Inu ecosystem. Its main purposes include enhancing network scalability, lowering transaction costs, and improving speed. As such, some industry participants believe the further advancement of the protocol could positively impact SHIBs valuation. For more updates on the ecosystem, make sure to check out our Shibarium news.

Another key indicator that has pumped in the past 24 hours is SHIBs aggregated daily transaction volume (where each exceeds $100,000). The figure reached almost $30 million, a 62% increase on a 24-hour basis.

Rising whale activity, combined with an overall crypto market rally, can be viewed as a sign of confidence from investors. This can result in higher demand and growing interest in the token, potentially attracting additional participants into the ecosystem.

What Does the Future Hold?

Other important metrics, such as the SHIB exchange netflow and the Relative Strength Index (RSI), suggest that the uptick could continue in the near future. 

As observed on CryptoQuant, SHIB outflows have predominantly surpassed inflows in the past month, signaling a shift from centralized platforms toward self-custody methods. This is generally considered bullish since it reduces the immediate selling pressure.

The RSI, which measures the change and speed of price movements, varies from 0 to 100. A ratio above 70 indicates that the asset might be overbought and that a correction could be imminent. Currently, the RSI is at 46.

On the other hand, one X user forecasted some potentially bad news for the SHIB bulls. They assumed the token could slip to $0.000015 if losing the major resistance level of $0.000017. As mentioned above, the price is trading below that mark as of the moment.