Ethereum
Can SHIB withstand bearish pressure from ETH and BTC?
Shiba Inu price dropped to $0.000016 on July 26, 2024, as investors turn to BTC and ETH. Here’s what SHIB traders can expect in the coming days.
Shiba Inu Falls 19% as Ethereum ETF Hype Fades
Between July 5 and July 18, the global cryptocurrency market was in turmoil as dovish NFP and CPI data revived investor interest in the sector. Like the rest of the market, Shiba Inu saw a meteoric rise of 58.17% during these eventful 14 days.
However, things have taken a negative turn for SHIB since July 19, amid new developments surrounding the US political landscape as well as the launch of the Ethereum ETF.
First, on July 21, Joe Biden withdrew from the 2024 presidential race, tipping the scales in his favor. Donald TrumpWith Trump being seen as a Bitcoin-friendly candidate, this development has drawn investors’ attention to BTC.
Additionally, Ethereum ETFs were launched on July 23, triggering a wave of institutional demand for ETH. In the first two days of trading, Ethereum ETFs saw nearly $2 billion in trading volumes.
These two critical events appear to have disproportionately shifted investor attention to the BTC and ETH markets over the past week.
Therefore, other sectors of crypto, including meme coins like the Shiba Inu (SHIB) have clearly struggled to gain traction.
The price of SHIB increased by 58.17% between July 5 and July 18. But as investors turned to BTC and ETH following Joe Biden’s departure and the launch of Ethereum ETFs, the price of SHIB entered a sharp downtrend.
The chart above shows that SHIB is now trading at $0.0000017 at the time of writing on July 26, reflecting a 19% decline from the monthly peak of $0.000020 recorded on July 18.
This raises concerns that the shift of major investors to Bitcoin and Ethereum could hurt demand in other crypto sectors.
And with Donald Trump set to speak at the Bitcoin conference in Nashville this weekend, that gap could widen, likely pushing the price of the Shiba Inu even lower.
SHIB Price Prediction: Bulls Must Hold $0.000015 Support
Shiba Inu price is currently trading at $0.00001675, reflecting a modest gain of 2.19% on the day. However, the overall trend appears to be bearish as SHIB is under significant downward pressure after a sharp rally in early July. Recent price action suggests that bulls need to defend the critical support level at $0.000015 to avoid further declines.
The technical indicators on the chart highlight key resistance and support levels. The 20-day EMA at $0.000017372 acts as an immediate resistance, with further resistance levels at $0.000018572 and $0.000019834.
On the downside, the crucial support level lies at $0.000015 and if the price breaks below this level, it could potentially test the next support at $0.000014. The Parabolic SAR indicator is currently above the price, suggesting that the downtrend could continue in the short term.
The Relative Strength Index (RSI) is hovering around 54.62, indicating that the market is neither overbought nor oversold. This neutral RSI reading suggests that SHIB could consolidate around current levels before making a decisive move.
For the bulls to regain control, SHIB must break above the 20-day EMA and hold this level to target higher resistance levels. Conversely, a failure to hold the $0.000015 support could see SHIB revisit lower support levels, which could lead to further declines.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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