TL;DR

Negative exchange netflows and an RSI near oversold levels suggest a potential price recovery for the meme coin. On the other hand, the recent problems related to Shibarium and its weak activity signal that the pullback might be far from over.

Can SHIB Reclaim Its Former Glory?

Despite its sporadic price increases, Shiba Inu (SHIB) has been on an evident downfall since the beginning of the year. As of this writing, it is worth approximately $0.00001223, representing a 42% decline from its value on the first day of 2025. The assets market capitalization has plunged to $7.2 billion, whereas top competitors like MemeCore (M) and Pepe (PEPE) have started closing the gap to it.

However, its not all doom and gloom for SHIB as three important factors suggest a rebound could be on the horizon. The Shiba Inu burn rate has exploded by over 200,000% in the past 24 hours, resulting in hundreds of thousands of tokens sent to a null address. While the USD equivalent of the destroyed stash is negligible, ongoing burns gradually reduce SHIBs supply, which could drive its value higher if demand remains intact.

Next on the list is the meme coins exchange netflow, which in the past week has turned negative. This means that investors have switched from centralized platforms toward self-custody methods, thus reducing the immediate selling pressure.

SHIB Exchange Netflow, Source: CryptoQuant Last but not least, we will touch upon Shiba Inus Relative Strength Index (RSI). The indicator, which measures the speed and magnitude of the latest price changes, recently dipped to 20, or its lowest level observed in the past three months. 

Readings below 30 signal that the asset has entered oversold territory and could be poised for a rebound. In the following hours, the RSI headed north but remains close to the bullish zone.

SHIB RSI, Source: CryptoWaves

Something for the Bears

The weak activity on Shibarium, though, suggests that Shiba Inus problems might be far from over. Daily transactions processed on the layer-2 blockchain solution were in the millions earlier this year, but over the last few weeks, the figure dipped under 20,000. 

Moreover, Shibariums security was breached in mid-September. According to some reports, the attack was carried out using a flash loan to purchase 4.6 million BONE tokens.

LUCIE, the pseudonymous marketing strategist of Shibarium, said the protocol was not hacked and clarified that the issue stemmed from stolen validator keys used to push a fake state. They also assured that investors funds are safe as they are secured in multisig cold storage.