Shiba Inu Faces Price Setback Amid Market Downturn, but Signs Point to Potential Recovery

• Shiba Inu (SHIB) has lost 6.4% of its price value, currently priced at $0.000009639.
• The broader market downturn, led by Bitcoin, has impacted SHIB negatively.

The start of the week has taken a less favourable turn for Shiba Inu (SHIB), with key metrics indicating a 6.4% decline in its price, currently resting at $0.000009639. This dip in SHIB’s valuation is in line with the general market trend, primarily influenced by Bitcoin’s recent bearish movement. Notably, this downturn has forced Shiba Inu to lose the one zero it had shed in the previous week.

While market setbacks like this may appear concerning, they are pivotal for Shiba Inu to realign its focus on essential aspects. As the ongoing sell-off continues, SHIB’s on-chain metrics are nearing oversold territory, potentially paving the way for a price resurgence. The current Relative Strength Index (RSI) stands at 41.81, within the low neutral range. If it dips into the 30 range, investors may reconsider their selling activities and resume accumulating SHIB at a discounted rate.

Shibarium’s Growing Transaction Count Offers Stability

Furthermore, the burn rate, which had maintained a high level in the past week, has now declined by over 86%. However, a resurgence in massive SHIB burning is anticipated as the week progresses, creating a deflationary sentiment that could stimulate buying activity.

Additionally, despite the recent market turmoil, history has shown that market sentiments tend to shift positively. With over $145 million liquidated from the market within the past 24 hours, there is potential for a turnaround that could favour SHIB’s performance in the near term.

In a related development, Shibarium, the Ethereum-based layer-2 scaling solution, has been experiencing a remarkable surge in transaction count, nearing 81,500,000 counts and currently standing at 81,369,129. This sustained growth, coupled with network stability, provides users with confidence in a robust protocol that can accommodate increased resource commitments. This development could play a vital role in reshaping SHIB’s overall outlook as the week unfolds.

As the week progresses, investors and enthusiasts are encouraged to monitor these developments closely, as they may hold the key to Shiba Inu’s potential recovery in a dynamic and ever-changing market.