Can SHIB Withstand Bearish Pressure from ETH, BTC ?

Shiba Inu price dipped to $0.000016 on July 26, 2024, as investors shift focus toward BTC and ETH, here’s what SHIB traders can expect in the days ahead. 

Shiba Inu Dips 19% as Ethereum ETF Hype Cools

Between July 5 and July 18, the global crypto market was agog, as dovish NFP and CPI data revived investor interest in the sector. Like the rest of the market, Shiba Inu raced into a blistering 58.17% rally during those eventful 14 days.

However, things have taken negative turn for SHIB since July 19, amid fresh developments surrounding US political landscape as well as the Ethereum ETF launch.

First, on July 21, Joe Biden dropped out of 2024 Presidential Election race, which swung the campaigns pendulum in favour of Donald Trump. With Trump perceived to be a Bitcoin friendly candidate, this development has pulled investor attention toward BTC.

More so, Ethereum ETFs launched on July 23, sparking a wave of institutional demand for ETH. Within the first two days of trading, Ethereum ETFs recorded nearly $2 billion in trading volumes.

These two critical events appear to have skewed investors’ focus disproportionately toward the BTC and ETH markets over the past week.

Consequently, other crypto sectors, including meme-coins like Shiba Inu (SHIB) have evidently struggled for traction.

SHIB price rallied 58.17% between July 5 and July 18. But as investors switched focus to BTC and ETH in the aftermath of Joe Biden bowing out, and Ethereum ETFs launch SHIB price has entered a steep 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 time frame peak of $0.000020 recorded July 18.

This raises concerns that major investors’ switching focus to Bitcoin and Ethereum could be hurting the demand within other crypto sectors.

And with Donald Trump scheduled to speak at the Bitcoin Conference in Nashville this weekend, that gap could widen, likely pulling the Shiba Inu price further downward.

SHIB Price Forecast: Bulls Must Hold $0.000015 Support

Shiba Inu is currently trading at $0.00001675, reflecting a modest 2.19% gain for the day. However, the overall trend appears to be bearish as SHIB faces significant downward pressure after a strong rally earlier in July. The recent price action suggests that bulls need to defend the critical support level at $0.000015 to prevent further declines.

The technical indicators on the chart highlight key resistance and support levels. The 20-day EMA at $0.000017372 is acting as immediate resistance, with further resistance levels at $0.000018572 and $0.000019834.

On the downside, the crucial support level is at $0.000015, and if the price falls 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 bearish trend may 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 needs to break above the 20-day EMA and maintain that level to target higher resistance levels. Conversely, a failure to hold the $0.000015 support could see SHIB revisiting the lower support levels, potentially leading to further declines.