The Shiba Inu cryptocurrency (SHIB) witnessed a significant downturn early Friday, largely influenced by President Donald Trump’s latest tariff announcements that placed stress on market leader Bitcoin and bolstered the strength of the U.S. dollar. Nonetheless, price movements on the chart still suggest some bullish potential.
During a turbulent 24-hour period from July 31 at 13:00 to August 1 at 12:00, SHIB fell sharply by 6%, descending from $0.000013 to $0.000012. This downturn brought SHIB prices to their lowest point since July 9, continuing the downward trend established after reaching July 21 highs of approximately $0.00001600.
This decline coincides with a notable increase in the volume of SHIB tokens held on centralized exchanges, which surged to an impressive 84.9 trillion on July 28. This rise suggests a potential distribution phase by large investors or ‘whales’, despite an accumulation of 4.66 trillion SHIB tokens valued at $63.7 million, as highlighted by CoinDesk’s market insights model. In a promising development, the burn rate of SHIB tokens skyrocketed by an extraordinary 16,700%, with 602 million SHIB tokens eliminated through a series of coordinated transactions.
Key AI Insights for the Last 24 Hours
- Rejection at the resistance level of $0.000013 triggered a high-volume distribution phase.
- A solid buying interest solidified support at $0.000012, involving 1.19 trillion tokens.
- A breakout volume of 90.51 billion facilitated a movement above the $0.000012 threshold.
What Lies Ahead?
Despite the recent drop, the overall technical outlook remains somewhat optimistic. A noteworthy “inverted bullish hammer” candle formed in July, creating a potentially bullish scenario.
The inverted hammer consists of a long upper wick, a compact body, and a virtually non-existent lower wick. This pattern suggests that while buyers initially pushed prices upward, sellers ultimately reclaimed control, dragging prices back down close to the period’s starting point.
When this pattern arises following a significant downtrend, as in SHIB’s current situation, it may imply that bullish forces are gearing up to re-establish their presence in the market. Therefore, this formation may signal an early indication of a potential bullish trend reversal on the horizon.
However, SHIB traders should remain vigilant—should the price dip below the July low of $0.00001108, it would invalidate the bullish candlestick pattern.
Disclaimer: Portions of this article were generated using AI tools and reviewed by our editorial team to ensure accuracy and compliance with our standards. For further details, please refer to CoinDesk’s comprehensive AI Policy.
