Advertisement
Shiba Inu, a popular meme-based cryptocurrency, had a strong rally in July. Its price climbed up to $0.000016, which got a lot of traders and investors excited. Many believed it could continue to rise. But now, things are looking different. SHIB has dropped to around $0.000012, which means it has already lost a big chunk of its gains from last month.
This price drop is mainly because people are not buying it as much as they were a few weeks ago. The interest seems to be fading, and if the current trend continues, SHIB could fall even further. Right now, the price is moving in a downward direction on the chart, and that’s a pattern that usually suggests the sellers are stronger than the buyers. Each time the price tries to rise, it gets pushed back down again.
There’s a price point around $0.000011 that is acting like a safety net. If the price falls too close to that level and breaks below it, the situation could get worse. On the other hand, if it manages to stay above that, there’s still hope that SHIB can recover a bit. To bounce back, though, it would need to climb past $0.000014. That level is acting like a ceiling, and unless it breaks through, the price is likely to stay stuck or even drop more.
There’s also a metric that analysts look at called the MVRV ratio. It shows if people who bought SHIB earlier are in profit or loss. Right now, this ratio is very negative, around -27%. That means the average holder is actually at a loss. In simple words, most people who bought SHIB are now holding onto it while it’s worth less than what they paid. That usually isn’t a good sign because it shows there isn’t much excitement or confidence at the moment.
Some traders believe that such a big loss for the average user could lead to a bounce back, as selling pressure might ease. But for now, there’s no strong signal of that happening. Until this ratio moves closer to zero, the market might stay cautious.
If we look at the short-term trend, it’s also not very positive. The four-hour chart, which traders use to watch quick movements, shows that SHIB is still moving downwards. A different technical tool that measures strength in buying and selling, called the BBP, is also in the negative. This confirms that sellers are still in control for now.
If things don’t change soon, SHIB could fall even further, maybe to $0.000010. But if buying suddenly picks up and the price manages to break out of this downward trend, there’s a chance it could rise back to around $0.000015.
For now, though, SHIB is stuck in a tricky position, and how it moves next will depend entirely on whether buyers return and bring fresh energy to the market.
Credits – CCN