• Shibarium activity dropped to multi-month lows, signaling weaker ecosystem interest.
• Exchange inflows increased, suggesting rising sell pressure on SHIB.
• RSI nears oversold levels, hinting at a possible rebound.

Shiba Inu is facing a sharp downturn, leaving many holders unsettled. The second-largest meme coin has fallen steadily for weeks, and the broader market correction only deepened the decline. Prices now hover near $0.00001239, a sharp drop from December’s local peak of $0.00003086. Traders who once celebrated SHIB’s momentum are now staring at charts that whisper caution. The mood feels heavy, and the latest data shows troubling signals.

Weakening Network Activity Raises Alarms

One of the clearest warning signs comes from Shibarium, the project’s layer-2 scaling network. Transaction activity recently fell to nearly one million on August 24, the lowest since June. This decline signals waning interest across the ecosystem. Imagine a bustling city street suddenly emptied—such silence unnerves investors. Each Shibarium transaction burns SHIB tokens, a mechanism designed to tighten supply. When demand rises, this burn process can fuel upward price pressure.

Yet demand remains flat, and the latest 24-hour burn rate barely moved, increasing by only 1.2%. That amounts to 3.7 million tokens, valued at a trivial sum in dollar terms. Meanwhile, exchange flows paint an equally grim picture. Inflows have outpaced outflows, meaning more SHIB is moving into centralized platforms. These combined signals—weak network activity, tepid burn rate, and growing exchange inflows—form a storm cloud over SHIB. Sentiment leans bearish, and holders feel the weight of uncertainty.

Glimmers of Hope Amid Bearish Pressure

Despite the mounting pressure, not all voices echo doom. Some analysts still point to potential recovery, citing technical patterns and historical behavior. One popular analyst on X highlighted that SHIB may still be consolidating in an accumulation zone. In past cycles, similar phases preceded explosive rallies. The targets suggested by this analysis include $0.00005589 and $0.00003296, representing gains of over 100% from current levels.

Technical indicators add weight to this argument. The Relative Strength Index, or RSI, has slipped closer to oversold territory. This tool measures the pace of recent price changes. Readings near 30 often indicate oversold conditions, suggesting an asset may be primed for a rebound. SHIB’s RSI has steadily declined, hinting that the coin might be nearing a reversal point.

For hopeful investors, these signs are like small rays piercing a cloudy sky. The combination of historical accumulation patterns and RSI support keeps optimism alive, even as the broader trend appears bleak. If SHIB can reclaim momentum, the coin could surprise traders who have already written it off.

Shiba Inu has stumbled, weighed down by reduced Shibarium activity and growing exchange inflows. The low burn rate further highlights weak demand. Yet technical signals like RSI hint at possible recovery. Whether SHIB sinks further or rebounds, the coming weeks will be pivotal.

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