Shiba Inu Faces Bearish Pressure Amid 4.81% 24-Hour Drop

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Shiba Inu (SHIB) is under bearish trend pressure, dropping 4.81% in 24 hours despite a 5.1% monthly rise. Open interest fell 16.18% from the prior day, per Coinalyze. The price decline aligns with a negative funding rate and fading speculative interest, hinting at more downside. The July rally failed to break the bearish trend, with technicals pointing to a possible $0.0000034 level, a 26.6% drop from now.

Shiba Inu [SHIB] is up 5.1% over the past month, but has declined by 4.81% in the past 24 hours. The Open Interest change from yesterday was -16.18%, Coinalyze data showed.

Shiba Inu Coinalyze
Source: Coinalyze

The swift short-term price losses were accompanied by a slide in the spot CVD and a downturn in speculative interest. Alarmingly, the funding rate was also bearish in recent hours.

Together, the short-term signals painted a bearish picture for Shiba Inu. For context, Dogecoin was down by only 1.75% in 24 hours, and Bitcoin [BTC] has slid just 0.37%.

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The July-end Shiba Inu bounce was unable to alter the downtrend

Shiba Inu 1-day Chart
Source: SHIB/USDT on TradingView

The OBV on the daily timeframe has been trending higher over the past ten days. The MACD was also above the zero line to indicate firm upward momentum over the past week.

On July 25 and 26, Shiba Inu trading volumes soared higher, as did the price. Over just one weekend, the popular memecoin had rallied 39.8%, from a low of $0.0000047 to $0.00000583.

While the gains and volume were impressive, the overall structure of the token was still bearish. The weekend rally was only able to momentarily test the $0.0000057 supply zone and the 61.8% Fibonacci retracement level before slumping lower.

This slump has been renewed in the past 24 hours. If the bearish structure continues, a price drop to $0.0000034, the next Fibonacci extension level, can be expected. Such a move would represent a 26.6% decline from current market prices.

Traders’ call to action- Sell once this demand zone is breached

Shiba Inu 2-hour Chart
Source: SHIB/USDT on TradingView

In the short-term, the $0.0000046 demand zone has been important over the past week. The technical indicators showed bears have the upper hand. With the higher timeframe context, it appeared likely that SHIB would continue southward.

Traders can wait for a drop below this support zone to go short. Meanwhile, a move beyond the $0.0000052 level would be the first indication that the late-July bounce was not complete.

Final Summary

  • The Shiba Inu rally towards the end of July was not a recovery for the memecoin, but a pullback within a long-term downtrend.
  • This pullback has likely ended, and SHIB is likely to see further drawdown.

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