Shiba Inu Price Forecast: Traders Fear Bull-Trap after SHIB’s 30% Rebound

According to the chart above, Shiba Inu trading volume reached $36.46 million on July 7. But while price have been on the rise since them, SHIB traders have been conducting far lesser transactions, in fears of walking into a bull trap.

The latest data shows that Shiba Inu only attracted a trading volume of $26.3 million on July 8. This $10 million decline in Shiba Inu trading volume accounts for approximately 27% drop-off in trading activity between July 7 and July 9.

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When an assets trading volume begins to drop during a price recovery phase, it can be interpreted as a bearish signal for a number of reasons.

When an asset’s trading volume begins to drop during a price recovery phase, it can be interpreted as a bearish signal for a number of reasons.

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Firstly, declining volume suggests that fewer traders are participating in the market, which can indicate a lack of confidence in the sustainability of the price rise. This reduced participation often leads to weaker buying pressure, making it easier for the price to reverse and fall.

Secondly, a drop in trading volume during a price increase may signal that the recovery is being driven by a smaller group of buyers, rather than broad market support.

This scenario raises the risk of a bull trap, where the Shiba Inu price briefly rises but lacks the necessary momentum to maintain the uptrend, eventually leading to a sharp decline.

SHIB Price Forecast: $0.000015 Reversal on the Cards

Shiba Inu price has reclaimed $0.000017 at the time of writing on July 9, having rebounded 30% from the historic lows recorded last Friday. However, SHIB traders’ hesitation, as reflected by the 28% drop-off in trading volume, underscores the cautious sentiment and potential for another bearish reversal toward the $0.000015 level in the days ahead.

More so, technical indicators on the Shiba Inu daily timeframe price chart below also supports this bearish price forecast.

The Bollinger Bands (BB) show that the price is still trading below the middle band ($0.000016887), suggesting that downward pressure remains. Additionally, the recent price action has struggled to break through the 23.6% Fibonacci retracement level at $0.000018748, indicating a significant resistance point.