In the past few weeks, Shiba Inu seemed to have fallen into a deep sleep, with prices barely moving. However, the Shiba Inu (SHIB) ecosystem has recently suffered a major blow, with key indicators of its second-layer blockchain Shibarium showing a cliff-like decline.
According to Shibariumscan data, the number of new transactions plummeted from 7,161 to 1,172, a drop of 83.6%; the number of newly generated blocks also dropped from 17,210 to 5,742, a decrease of 66.6%.
These alarming data undoubtedly indicate that Shibarium network activity is slowing down dramatically, most likely reflecting a significant decrease in user interaction and transaction activity. This alarming decline may be due to the decline in Shibarium's popularity or technical problems.
Despite the dire situation, the prices of Shiba Inu tokens SHIB and BONE rose against the trend, up 2.2% and 3.16% respectively, which is enough to show that the market sentiment has a much greater impact on the value of these tokens than the specific performance of Shibarium.
However, the reasons for such a dramatic drop in Shibarium network activity remain murky and unclear, and may involve thorny technical challenges or waning interest. These questions are crucial to understanding the future direction of Shibarium and its role in the Shiba Inu ecosystem.
SHIB/USDT chart from TradingView
Solana Gains Support
The 200-day exponential moving average (EMA) at $140 is a key support level for Solana. Traders and investors must be vigilant about this level because it has historically been a reliable indicator of a possible reversal or rebound.
The current market trend suggests that Solana may see a sharp correction in the next few days, but the extent of the correction depends largely on the overall market situation. At present, the market is in a relatively stable situation, Bitcoin is stable at around $60,000, and other cryptocurrencies like Solana have not shown much appeal.
If the market sentiment becomes more optimistic, Solana is likely to rebound strongly from the $140 mark and may even target the next resistance level of $151 or even higher. However, if the entire market remains stable or bearish, Solana may find it difficult to hold its current position above the 200 EMA.
Once this support is breached, more losses could be instigated, perhaps targeting below $130. On the daily chart, Solana’s Relative Strength Index (RSI) shows that it is in a relatively neutral zone, which means it has the potential to move in either direction depending on the catalyst in the market.
Will Bitcoin fall again?
In discussions about the technical health of Bitcoin, the relative strength index (RSI), a tool used to measure market momentum and potential price reversals, was at 43 as of the latest data. This neutral reading nakedly reveals the current balance of the market. There is neither obvious overbought nor oversold phenomenon, which exactly reflects the indecisive mentality of investors.
At the same time, Coinglass’s liquidation data clearly shows the tendency of the market structure, with short positions currently in the upper hand. If the price of Bitcoin shows an upward trend, it is very likely to trigger short liquidations of up to $2.41 billion, thereby pushing the price to a higher level.
On the other hand, if the market is under downward pressure, it will probably lead to the liquidation of about $1.38 billion of long positions, which will undoubtedly exacerbate the tragic price drop. These data and analysis provide a quantitative and intuitive perspective for understanding the dynamics of the Bitcoin market.
Well, that’s all for this issue for now. See you next time! If you like it, please follow us so you don’t get lost!
