Shiba Inu Slips, But Still Poised for Monthly Gain Amid Shifting Sentiment
Shiba Inu (SHIB), the second-largest memecoin by market cap, is facing renewed selling pressure but remains on track to notch a double-digit monthly gain in July, despite broad weakness in the meme token sector.
As of Tuesday, SHIB dropped to $0.00001263—its lowest since July 10—marking a 9% weekly loss and a 2.28% decline in the past 24 hours. The retreat comes amid a broader market downturn, with the CoinDesk Memecoin Index falling 10% over the same period.
The latest sell-off occurred despite a dramatic increase in token burning. Over 600 million SHIB were destroyed in a single session—a 16,710% surge in burn rate—yet price action failed to respond. Analysts say this highlights a growing shift among investors toward utility-driven projects, rather than speculative meme assets.
Key Metrics:
- 24-Hour Decline: SHIB fell from $0.000013107 to $0.000012809.
- Support/Resistance: Resistance capped upside at $0.000013184, with support forming near $0.000012663.
- Volume Spike: Token volume surged to 43.5 billion during a brief midday rally.
- Pattern Formation: Price action followed a three-phase structure—consolidation, distribution, and short-covering.
Despite recent weakness, SHIB’s monthly chart shows the formation of an inverted hammer candle—a classic bullish reversal indicator. Though sellers ultimately pushed the price down, the long upper wick suggests renewed buyer interest at lower levels.
Competitive Pressure Mounts
SHIB’s struggle for momentum comes as investors redirect flows into other tokens like BONK, PENGU, and the utility-focused Remittix. These projects have gained traction amid increasing demand for real-world applications, further pressuring SHIB’s position as a top memecoin.
While SHIB may end July in positive territory, its inability to sustain rallies despite aggressive supply reduction efforts could limit upside unless broader sentiment shifts in favor of memecoins.
