Shiba Inu Price Drops 11% Amid Weak Burns and Bearish Technicals

Shiba Inu (SHIB) has experienced a notable decline in price over recent trading sessions, with technical analysts identifying key levels that could determine the coin’s near-term direction. As the token trades within a defined range, bulls have been monitoring swing points on the 1-day chart at $0.00001765 and $0.00001028, while the Chaikin Money Flow (CMF) remains below the +0.05 threshold, indicating cautious buying pressure [1]. The mid-range level at $0.00001328 has recently been tested as resistance, increasing the likelihood of a further decline toward the range lows [1].

On the 4-hour chart, the Awesome Oscillator remains below the zero line, reflecting ongoing bearish momentum. However, the CMF is above +0.05, suggesting that short-term buyers are becoming more active. Key support and resistance levels have been identified at $0.00001184 and $0.00001415, with the former potentially acting as a buying opportunity if the price revisits the level. A drop below $0.0000116 would signal weakening bullish momentum and prompt traders to consider closing long positions [1].

The token’s broader context is also concerning. CoinMarketCap data indicates that the memecoin sector has lost 18.8% of its market capitalization over the past month, with Dogecoin (DOGE), the sector leader, also showing range-bound activity since March. A recent bullish breakout attempt by DOGE in mid-July failed, highlighting the fragile nature of the sector [1].

SHIB is currently trading at $0.0000121, down 2.3% in the last 24 hours, and is approaching a critical support level near $0.0000110. The recent burn update has also raised concerns among investors, as the rate of token burns fell by 90.95%, casting doubt on SHIB’s long-term value proposition [4]. Additionally, the broader market weakness has contributed to a 11% drop in SHIB’s price, shifting short-term investor sentiment toward bearish expectations [5].

Despite these challenges, technical indicators suggest that SHIB may be approaching a pivotal moment. The Relative Strength Index (RSI) is moving toward neutral territory, which could indicate a potential balance between buyers and sellers. If the token can hold the ascending support line and generate upward momentum, it may set the stage for a broader recovery. However, the sheer supply of SHIB remains a fundamental obstacle to reaching the $1 price target, a goal that continues to attract speculative attention [6].

With SHIB retracing all its monthly gains, investors are increasingly turning their attention to other altcoins with stronger fundamentals and clearer use cases. Some analysts have highlighted projects with real-world utility as potential outperformers in the current market environment [7].

In the coming days, SHIB will face a critical test of its ability to maintain key support levels without succumbing to further selling pressure. Traders and investors are advised to closely monitor the price action around the ascending triangle pattern and watch for volume shifts as the token approaches a potential turning point.

Source:

[1] https://ambcrypto.com/shiba-inu-price-falls-key-entry-points-for-shib-bulls-revealed/

[2] https://u.today/shiba-inu-shib-price-breakout-in-3-days-or-not

[3] https://u.today/187****14693-shib-turn-coinbase-whale-into-biggest-shiba-inu-bull-overnight

[4] https://coincentral.com/shiba-inu-burn-update-disappoints-pepe-loses-steam-remittix-emerges-as-augusts-best-crypto-to-buy-now/

[5] https://coincentral.com/shib-price-down-11-doge-breaks-support-while-cold-wallet-turns-rank-progress-into-crypto-income/

[6] https://www.tokenmetrics.com/blog/will-shiba-inu-coin-reach-1

[7] https://www.barchart.com/story/news/34326407/altcoin-set-to-surge-past-shiba-inu-and-chainlink-eyeing-a-spot-in-the-top-10-this-year