Category: Crypto News, News
Shiba Inu Faces Bearish Pressure as Massive Transfers and Weak Technicals Drive Price Toward $0.00001050
Shiba Inu (SHIB) is facing mounting bearish pressure amid record token transfers and deteriorating technical indicators. On July 31, over 4.87 trillion SHIB tokens were moved in a single day, a sign of aggressive selling activity by large holders. This volume far exceeded the seven-day average of 2.72 trillion tokens and aligns with a breakdown in key technical levels. The price has fallen below the 50 EMA and is nearing critical support at $0.00001200, raising concerns of further downward momentum [1].
The on-chain data paints a clear picture of market sentiment. Large token movements often correlate with distribution phases, in which whale activity intensifies during periods of increased volatility. A $4.2 million withdrawal from a Binance wallet was also noted on July 31, potentially signaling a shift in custody strategies among major SHIB holders [2]. This activity, combined with the price action, suggests a growing caution among long-term investors.
Technical indicators offer little optimism. While the price approaches oversold territory, the RSI shows no bullish divergence, a red flag for potential further declines. The absence of any recovery above key moving averages suggests that bearish momentum is structural rather than cyclical [3]. If the $0.00001200 level fails to hold, SHIB could drop toward $0.00001050, a level last seen in early 2025.
Burn activity has increased in recent days, offering a potential tailwind for the token. However, this has not been sufficient to offset the broader selling pressure. Analysts have not provided clear forecasts for a rebound, leaving the market in a state of uncertainty. The lack of bullish divergence in key metrics points to a continuation of the current downtrend in the near term [4].
The broader crypto market has mirrored SHIB’s bearish tone. Solana (SOL) fell to $166, Bitcoin and Ethereum both declined, and XRP saw a similar downward trend. The increased transaction volumes on Bitcoin and Ethereum, up 7.2% and 4.2% respectively, suggest a broad-based shift in trading behavior [5]. These trends reinforce the notion that the current selling pressure is not isolated to SHIB but reflects a wider market correction.
Market participants are now closely watching on-chain data and technical levels for signs of stabilization or reversal. For now, the bearish structure remains intact, with no immediate catalysts suggesting a reversal. Investors are advised to remain cautious and monitor both price action and whale activity for potential turning points.
Sources: [1] Mitrade. Shiba Inu Price Prediction: Why SHIB Might Have To Fight … https://www.mitrade.com/au/insights/news/live-news/article-3-996969-20250730
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