The cryptocurrency market has seen a turbulent few weeks, with Shiba Inu (SHIB) experiencing significant downward pressure. On July 31, SHIB’s price dipped toward $0.000016, raising concerns among investors about the possibility of a breakdown below the critical $0.000015 level. This decline follows a broader trend of short-term traders exiting their SHIB positions, as evidenced by recent on-chain data.
Market Sentiment Shifts After Bitcoin Nashville Conference
The anticipated boost from Donald Trump’s appearance at the Bitcoin Nashville conference failed to materialize for the memecoin sector. Instead, investor attention remained largely on mega-cap assets, leaving smaller cryptocurrencies like Shiba Inu struggling to maintain momentum. The bearish sentiment that followed the launch of Ethereum ETFs on July 22 has particularly impacted SHIB, with increased volatility driving a cautious approach among crypto investors.
Bears Mount a $100 Million Sell-Wall
As of July 31, SHIB had fallen 19.18% from its monthly peak of $0.000018, reached on July 22. Data from IntoTheBlock’s Exchange Order books reveal a substantial sell-wall forming, with traders placing orders to sell over 5.9 trillion SHIB at an average price of $0.000017. This represents a potential sell-off worth over $100 million. In contrast, buy orders for SHIB have only reached 3.4 trillion tokens, indicating an oversupply of approximately 2.5 trillion SHIB.
This imbalance between supply and demand is likely to exert additional downward pressure on SHIB’s price. The situation is exacerbated by the fact that other top 20-ranked cryptocurrencies, including XRP, Bitcoin Cash (BCH), and Ethereum (ETH), have outperformed Shiba Inu over the past week. As a result, short-term SHIB traders may be inclined to liquidate their positions in favor of assets showing stronger performance.
Price Forecast: Bulls to Defend Critical Support
The recent performance of Shiba Inu suggests that the bulls will need to defend the $0.000015 support level to prevent further declines. The Donchian Channel (DC) currently indicates a trading range with an upper limit at $0.00002151 and a lower limit at $0.000015783, confining SHIB to a tight range. Immediate resistance is noted at $0.000017967, and a break above this level could see a move toward the upper DC limit.
Also Read: Shiba Inu About To Explode? Expert Claims 160,000% Upside
The Relative Strength Index (RSI) stands at 42.39, indicating that the market is bearish but not yet oversold. This suggests that there could be further downside before SHIB reaches oversold conditions, adding to the pressure on bulls to maintain the current support level. Should the price break below $0.000015783, a steeper decline toward $0.00001400 could be on the horizon.
In conclusion, Shiba Inu faces significant challenges in the coming days as bears continue to dominate the market, and bulls fight to defend critical support levels. Investors will need to keep a close eye on market movements to gauge whether SHIB can recover or if further declines are imminent.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
