Shiba Inu (SHIB) has been in a negative mood since March 05, 2024, falling from $0.000045 to a low of $0.000014. The current price of SHIB stands at $0.000016, and traders should keep in mind that a risk of further decline still persists.
The negative news is that the number of transactions on the Shibarium network has decreased significantly, from 7,409 daily transactions on July 5 to 3,400 in the last 24 hours. So where is the price of Shiba Inu (SHIB) going next, and what can we expect from the rest of July 2024?
Today, Crypto Lists will discuss Shiba Inu (SHIB) price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.
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- 1 A sharp drop in transactions
- 2 Transaction or just the market?
- 3 A decline in large trades
- 4 Technical analysis for Shiba Inu (SHIB)
- 5 Important support & resistance levels for Shiba Inu (SHIB)
- 6 What speaks for the rise in the Shiba Inu (SHIB) price
- 7 What indicates further downfall for Shiba Inu (SHIB)
- 8 What do analysts and experts say?
A sharp drop in transactions
Shiba Inu (SHIB) is an Ethereum-based meme-coin inspired by Dogecoin, launched in 2020 by an anonymous developer known as Ryoshi. Unlike Bitcoin, which is designed to be scarce, SHIB is intentionally abundant and has a total supply of one quadrillion. The Shiba Inu Token ecosystem supports projects such as an NFT art incubator and the development of a decentralized exchange called Shibaswap.
Similar to numerous other cryptocurrencies, Shiba Inu displays a high level of volatility, characterized by substantial price swings. Like many other cryptocurrencies, Shiba Inu (SHIB) remains under pressure after Bitcoin’s price weakened below $60,000 and in less than several weeks Shiba Inu (SHIB) has lost nearly 50% of its value.
Supply: 549 / 589
Release date: August 10, 2020
Description: Discover Shiba Inu and be part of the meme coin revolution.
Risk warning: Trading, buying or selling crypto currencies is extremely risky and not for everyone. Do not risk money that you could not afford to loose.
Transaction or just the market?
However, the decline in SHIB’s price is not solely due to a negative trend on the cryptocurrency market and it also reflects a significant decrease in the number of transactions involving SHIB. According to the latest data, the number of transactions on the Shibarium network has decreased significantly, from 7,409 daily transactions on July 5 to 3,400 in the last 24 hours.
Furthermore, the total value locked in Shibarium has also decreased. As many know, the TVL metric represents the total value of all assets locked in a blockchain’s smart contracts, and it is therefore a key indicator of the overall health and adoption of the network. As per source DefiLlama, the current TVL for Shibarium is $1.57 million, representing a decline from the $3.79 million recorded at the end of March.
A decline in large trades
The likely cause of Shibarium’s decline is the lackluster performance of the Shiba Inu token. Despite being a well-known meme token and ranking 11th in market capitalization among all cryptocurrencies, Shiba Inu doesn’t even hold the third spot in trading volume within its own sector. Crypto analysts agree that movements like the current drop could very well occur again as market sentiments shift and market participants continue to exit the space.
Another important metric related to the token’s ecosystem has plummeted substantially and according to IntoTheBlock’s data, aggregated daily volume where each transaction exceeds $100,000 is less than $27 million (a 70% daily decline). A decline in large trades might be interpreted as waning confidence among large holders or institutional investors which could negatively affect market sentiment and potentially lead to further declines in SHIB’s price as other investors follow suit.
Trading volume contributes significantly to the liquidity and a decrease in the trading volume reduces the overall liquidity, making it more difficult for traders to buy or sell large amounts of SHIB without affecting the market price. With reduced liquidity, the market may become more susceptible to price swings and potential investors should keep in mind that smaller trades could have a more pronounced impact on SHIB’s price then.
Technical analysis for Shiba Inu (SHIB)
Shiba Inu (SHIB) has significantly weakened since March 05, 2024, falling from $0.000045 to a low of $0.000014. Shiba Inu’s current price stands at $0.000016, and as long the price of this cryptocurrency stands below $0.000025, bears would be in control of the price action.
Important support & resistance levels for Shiba Inu (SHIB)
On this chart (the period from January 2024), I marked important support and resistance levels that can help traders understand where the price could move. Shiba Inu (SHIB) continues to be under pressure, but if the price advances above $0.000025, the next target could be $0.000030. The important support level is $0.000015, and if the price breaks this level again, it would be a “SELL” signal, and we have the open way to $0.000010.
What speaks for the rise in the Shiba Inu (SHIB) price
General market sentiment is an important factor that influences SHIB’s price but positive news, partnerships, and developments related to the Shiba Inu network can attract investors and traders, pushing the price up.
Analysts and traders often closely watch the activity of crypto whales because the behavior of crypto whales can influence market sentiment and an increase in the number of big transactions for SHIB is something that could drive the price higher. When a whale makes a substantial buy, it can be seen as a bullish sign, potentially attracting more buyers. For the bulls to take again control of price movement, a move above $0.000025 would be beneficial.
What indicates further downfall for Shiba Inu (SHIB)
Shiba Inu (SHIB) is unpredictable and a highly risky investment, and because of this, investors should continue to be very cautious in the case of this cryptocurrency. The downfall of SHIB can be influenced by a wide range of factors, including market sentiment, regulatory developments, technological advancements, macroeconomic trends, and more.
Market conditions can change rapidly, and staying informed and employing risk management strategies are crucial when navigating the cryptocurrency market. The price of Shiba Inu (SHIB) is usually correlated with the price of Bitcoin, and if the price of Bitcoin drops below the $55000 support level, that could have a negative influence on the price of SHIB.
What do analysts and experts say?
Shiba Inu (SHIB) remains under pressure like Bitcoin and the rest of the cryptocurrency market and traders should keep in mind that a risk of further decline still persists. Crypto analysts agree that SHIB is a highly risky investment, and its price can fluctuate dramatically over short periods, leading to substantial gains or losses for investors. Negative information is that the number of transactions on the Shibarium network has decreased significantly, from 7,409 daily transactions on July 5 to 3,400 in the last 24 hours.
Furthermore, IntoTheBlock reported this Wednesday that aggregated daily volume where each transaction exceeds $100,000 is less than $27 million currently. A decline in large trades might be interpreted as waning confidence among large holders or institutional investors which could negatively affect market sentiment and potentially lead to further declines in SHIB’s price as other investors follow suit.
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