Shiba Inu (SHIB) Drops 7.86% on July 23 Reversing Last Weeks 16% Gains Amid Altcoin Market Weakness

Shiba Inu (SHIB) has experienced a notable 7.86% decline on July 23, marking its largest single-day drop since May 30 and reversing part of last week’s 16% gains. This correction aligns with broader altcoin market weakness, yet analyst CJ has identified a potential long-term opportunity amid the pullback. Highlighting favorable macro conditions, CJ emphasizes that SHIB remains within a defined price channel established since February 2, with support tested at $0.00001004 and resistance at $0.00001764 [1]. The analyst has set alerts for a key entry zone between $0.0000142 and $0.0000128, positioning this mid-range demand level as a strategic accumulation point for bullish investors [1].

CJ’s technical analysis underscores the token’s resilience within its trading range, noting that SHIB has tested support twice in recent months without breaking below critical levels. While the current price hovers near the upper end of this zone, the analyst anticipates a potential reversal if the asset holds its support. A successful breakout from the months-long channel could push SHIB toward $0.0000190, representing a 36% increase from its recent price of $0.00001395. Extended targets of $0.000024 and $0.000035 further reinforce the bullish case, contingent on overcoming resistance between $0.0000140 and $0.0000190 [1].

The broader market context adds nuance to CJ’s outlook. While some analysts, including Mitrade’s Maddox, project a 126% rally for SHIB following its recent outperformance over Litecoin [2], others caution against overly optimistic forecasts. Yahoo Finance has outlined a 2025 price range for SHIB between $0.00001 and $0.00003, with January 2025 highlighted as a potential bullish catalyst [4]. Nasdaq also notes SHIB’s role as a risk-on indicator in the meme coin sector, despite its speculative nature [6]. However, extreme price targets such as a $1 valuation for SHIB—discussed in a July 22 MSN article—are widely regarded as unrealistic given the token’s current market dynamics [7].

CJ’s strategy reflects a balanced approach to the asset’s volatility. While acknowledging short-term selling pressure, the analyst’s focus on SHIB’s macro structure and historical price action signals confidence in its longer-term trajectory. This aligns with Mitrade’s July 23 assessment, which noted SHIB’s recent momentum surpassing Litecoin and suggested sustained gains are possible if the trend continues [2]. Nevertheless, investors are urged to consider the inherent risks of meme coins, with on-chain data and ecosystem developments cited as critical factors for monitoring [1].

The market’s attention on SHIB underscores its growing influence in the crypto space. Analysts highlight the token’s expanding ecosystem and retail-driven momentum, positioning it as a key player in the second half of 2025. However, strategic entry points near established resistance levels remain central to mitigating downside risks. As the asset navigates its defined channel, the outcome of its next price action—whether a sustained breakout or a consolidation phase—will likely shape near-term sentiment and investment decisions [1].

Sources:

[1] [Analyst States Where to Go Long On Shiba Inu (SHIB)](https://coinmarketcap.com/community/articles/6883672d8708453433dcef03/)

[2] [Analyst Predicts Explosive 126% Shiba Inu Rally After...](https://www.mitrade.com/insights/news/live-news/article-3-978739-20250723)

[4] [SHIB Price Prediction: Where Shiba Inu Could Be by 2025...](https://finance.yahoo.com/news/shib-price-prediction-where-shiba-163254764.html)

[6] [3 Cryptocurrencies I've Got My Eye On for the Second Half...](https://www.nasdaq.com/articles/3-cryptocurrencies-ive-got-my-eye-second-half-2025)

[7] [Shiba Inu Price Prediction: If SHIB Hit $1 Today How Rich...](https://www.msn.com/en-us/money/other/shiba-inu-price-prediction-if-shib-hit-1-today-how-rich-would-you-be-experts-give-realistic-expectations/ar-AA1JdzHW)