Shiba Inu Dips 6% Amid Trump Tariff Fears and Heavy Selling Pressure

Shiba Inu (SHIB) has experienced a significant price decline amid shifting market dynamics, falling 6% in a 24-hour period between July 31 at 13:00 and August 1 at 12:00. During this time, the token’s price dropped from $0.000013 to $0.000012, marking the lowest level since July 9 [1]. The drop has been linked to broader macroeconomic factors, including the announcement of new U.S. tariffs by Donald Trump, which have exerted upward pressure on the U.S. dollar and affected Bitcoin and other crypto assets [1].

Market activity suggests that SHIB is being actively moved by large holders. According to CoinDesk’s Market Analysis Model, SHIB holdings in centralized exchanges surged to 84.9 trillion units on July 28, potentially signaling distribution by major investors. At the same time, 4.66 trillion SHIB, valued at $63.7 million, were observed to be accumulated within the same period [1]. These patterns indicate mixed signals from institutional or high-net-worth investors, with some taking profits while others appear to be building positions.

Additionally, SHIB has seen a significant token burn event, with 602 million SHIB burned, causing a 16,700% spike in the burn rate. While such actions are often viewed as bullish indicators due to reduced supply, the immediate price impact has been limited, as the token continues to face downward pressure [1]. The high-volume selling pressure at $0.000013 contrasts with the buying interest observed at $0.000012, where 1.19 trillion SHIB were purchased, reinforcing the level as a potential support zone [1].

From a technical standpoint, the formation of an “inverted bullish candlestick” pattern in July has generated optimism among analysts. This pattern, characterized by a long upper wick and a small body with little to no lower wick, is often interpreted as a sign of an early bullish reversal. Bulls may be attempting to re-enter the market after a downtrend [1]. However, technical indicators caution that if SHIB’s price continues to fall below the July low of $0.00001108, the validity of the bullish formation could be undermined [1].

The broader context suggests that SHIB, like many meme coins, remains vulnerable to macroeconomic sentiment and investor psychology. While token-burning mechanisms aim to create scarcity and support long-term value, the immediate price action is largely dictated by market dynamics. Analysts emphasize that SHIB’s recent performance does not indicate any fundamental change in its underlying utility or adoption [1]. Instead, the decline reflects a combination of technical exhaustion and the overall risk-off sentiment in the crypto space.

The cryptocurrency market as a whole has shown mixed performance, with some assets holding up better than others. SHIB’s price correction has raised concerns among long-term speculators who previously viewed the token as a speculative play with growth potential [1]. The divergence between price and momentum indicators also highlights the weakening investor sentiment in the space, as seen in the oversold RSI levels of Pepe and similar meme coins that have yet to show reversal strength [2].

Amid this volatility, SHIB’s performance is being closely monitored for signs of stabilization and renewed bullish momentum. Investors are advised to watch technical indicators, including support and resistance levels, alongside broader market developments that could influence investor behavior. The role of the SHIB community and major investors in shaping the token’s future trajectory remains critical, particularly as macroeconomic conditions remain uncertain [1].

[1] https://coinmarketcap.com/community/articles/688dbf7cf5899a648966eb67/