With the sell-the-news cycle following the Ethereum ETF debut on July 22, bearish traders have quickly moved to invade Shiba Inu’s short-term momentum. This elevated volatility surrounding the ETF’s arrival caused crypto financiers to become more skeptical about Ethereum-based assets, including Shiba Inu.
As the dust settles, SHIB finds itself plummeting to a new low, suffering a 14% drop in value since the ETF’s debut. This sharp decline mirrors the 72% fall from SHIB’s peak of $0.0000456 earlier this year, as highlighted by TradingView.
SHIB Price Under Siege
As of press time, the SHIB token trades at $0.00001578, experiencing a 4.42% decline within the last 24 hours. This decrease has also impacted its market capitalization, which now stands at $9.295 billion, ranking it 13th among cryptocurrencies.
Despite this negative price action, the 24-hour trading volume tells a different story, rising by 2.11% to $198.027 million. This increase in trading activity indicates a heightened interest in SHIB, even as its value drops. Notably, the surge in trading volume can be traced back to recent whale transactions on the blockchain, as major SHIB holders are actively shifting their assets.
On-chain data reveals a movement of over 1.3 trillion SHIB tokens in the past day, highlighting a huge growth in massive transactions and whale activity. Within 24 hours, 42 major transactions were recorded, with a seven-day high of 55 on July 25, 2024.
Conversely, July 28, 2024, recorded the week’s low with just 15 transactions. This resurgence of large transactions indicates that influential players are reentering the scene, setting the stage for potential shifts in the SHIB market.
SHIB Bulls vs. Bears: The Fight for $0.000015 Support
Amid the prevailing bearish market conditions, SHIB recently fell below its previous support level of $0.0000158, seeking new foundations. However, recent whale transactions have led market experts to believe the asset could find solid support around $0.000015, potentially halting further declines.
If this level is breached, SHIB’s price might test the $0.00001470 mark, last touched on July 7. The 20-day SMA reinforces this bearish outlook, as it stands above SHIB’s current price at $0.00001636.
On a positive note, if market momentum shifts, SHIB could climb to $0.0000166, recovering previous losses and neutralizing bearish pressure on the daily chart. This could propel SHIB towards the $0.0000173 mark, representing a 12% gain from its current price. Moreover, the RSI, at 23.69, is positioned in the oversold region and supports the possibility of an imminent reversal.
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