On July 31, the price of Shiba Inu fell to $0.00016; on-chain data showed that short-term traders were exiting their SHIB positions, raising concerns that a drop below the $0.000015 level could occur.

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Shiba Inu Bull Price Falls Back to $0.000016

Donald Trump’s recent appearance at the Bitcoin Nashville conference was expected to spark bullish sentiment across the cryptocurrency market. However, recent market trends suggest that investor attention has been focused primarily on mega-cap assets this week, while the memecoin space appears to be struggling.

Shiba Inu Price Analysis SHIBUSD

Bearish traders have been dominating short-term market momentum for the Shiba Inu since the sell-off news cycle following the launch of the Ethereum ETF on July 22.

Heightened volatility associated with ETF launches has led cryptocurrency investors to take a more cautious approach to trading Ethereum-hosted assets, including Shiba Inu.

Short sellers launch another $100 million sell wall

As of July 31, SHIB’s price has fallen 19.18% from its monthly peak of $0.000018 on July 22. Market data now shows that short-term traders appear to be preparing to abandon the token in favor of better performing assets.

IntoTheBlock’s order book data paints a clearer picture of the Shiba Inu’s bearish outlook.

Shiba Inu SHIBUSD trading order book data July 31

An in-depth analysis of the exchange’s order book revealed the flow of buy and sell orders, clearly pointing to significant selling pressure in the market. Specifically, traders have placed orders to sell more than 5.9 trillion SHIB at an average price of $0.000017. The value contained in this huge amount of selling has exceeded the $100 million mark. Looking at the buyer's market, the order volume of potential buyers is only 3.4 trillion SHIB. This significant gap highlights the oversupply phenomenon of approximately 2.5 trillion SHIB in the market.

According to the basic principle of market supply and demand, excessive supply often puts downward pressure on asset prices. At the same time, it is worth noting that in the past week, the top 20 cryptocurrency markets, including XRP, BCH and ETH, have outperformed Shiba Inu. This sharp performance difference further suggests that short-term SHIB traders may be accelerating the sale of their holdings and seeking to invest in cryptocurrencies that have performed stronger recently to optimize the monthly performance of their portfolios.

SHIB Price Prediction: Bulls to defend $0.000015 support

In July 2024, Shiba Inu Coin (SHIB) price action showed significant volatility, suffering a 19% decline in the second half of the month. Although the bulls attempted to lead a strong rally in mid-July, achieving a staggering 58.90% gain in just 11 days, the momentum suffered a crash when it hit the key resistance level of $0.00002151, which continues to be a SHIB A major stumbling block on the way up.

The Donchian Channel (DC) analysis further reveals the current trading environment of SHIB, with an upper limit set at $0.00002151 and a lower limit set at $0.000015783, which clearly indicates that SHIB is being restricted to fluctuate within a relatively narrow price channel. Currently, the price of SHIB is stable around $0.000016, while the direct resistance level is $0.000017967. If the bulls can successfully overcome this resistance, their next target will be the upper limit of the DC channel - $0.00002151.

Shiba Inu Price Prediction SHIBUSD

The Relative Strength Index (RSI) is 42.39, which shows that the market is currently in bearish territory, but not yet oversold. This means that there is still room for further declines before reaching oversold conditions. The recent drop of the RSI below the 50 level confirms the bearish momentum, indicating that prices may continue to face downward pressure in the short term.

The key support is at $0.000015783, which coincides with the lower boundary of the Donchian Channel. The bulls need to defend this support to prevent further declines. A break below this support could result in a deeper decline, possibly to the $0.00001400 level.