Following the launch of the Ethereum ETF on July 22, Shiba Inu (SHIB) has experienced a significant sell-off, mirroring the increased volatility seen in Ethereum-based assets. The initial excitement surrounding the ETF quickly turned into a “sell-the-news” event, with bearish traders targeting SHIB’s short-term momentum. As a result, SHIB has plummeted to a new low, suffering a 14% drop in value since the ETF’s debut, according to TradingView.
SHIB Price Under Siege
At the time of writing, SHIB is trading at $0.00001578, marking a 4.42% decline in the past 24 hours. This drop has also impacted its market capitalization, which now stands at $9.295 billion, placing it 13th among cryptocurrencies. Despite the negative price action, SHIB’s 24-hour trading volume has increased by 2.11% to $198.027 million, indicating heightened interest in the token even as its value drops. This surge in trading volume can be attributed to recent whale transactions on the blockchain, with major SHIB holders actively shifting their assets.
SHIB-USD 1-Day Chart (Source- TradingView)
On-chain data reveals that over 1.3 trillion SHIB tokens have been moved in the past day, highlighting significant 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, saw the week’s low with just 15 transactions, suggesting a resurgence of large transactions as influential players reenter the market.
SHIB Bulls vs. Bears: The Fight for $0.000015 Support
Amid the bearish market conditions, SHIB recently fell below its previous support level of $0.0000158. 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.
SHIB-USD 1-Day Chart (Source- CoinMarketCap)
The 20-day Simple Moving Average (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 Relative Strength Index (RSI) at 23.69 is positioned in the oversold region, supporting the possibility of an imminent reversal.
