The Shiba Inu (SHIB) cryptocurrency experienced a sharp decline of 6% between July 31, 1:00 PM, and August 1, 12:00 PM. During this period, SHIB’s price fell from $0.000013 to $0.000012, marking the lowest point since July 9. This drop has been linked to the new tariffs announced by former U.S. President Donald Trump that exerted pressure on Bitcoin 
$91,081 and bolstered the U.S. dollar.
Wallet Activity and the Influence of Large Investors
According to CoinDesk’s Market Analysis Model, the amount of SHIB in centralized exchanges rapidly increased to 84.9 trillion units on July 28. This surge might indicate that major investors are distributing their holdings. Additionally, during the same period, a notable accumulation of 4.66 trillion SHIB, valued at $63.7 million, was observed.
Investor interest remained high as SHIB token burn activities also intensified. A burning of 602 million SHIB caused a significant spike of 16,700% in the burn rate, potentially impacting price movements.
Technical Outlook and Price Patterns
A resistance point rejection at $0.000013 led to a high-volume selling process. However, buying interest at the $0.000012 level, amounting to 1.19 trillion SHIB, contributed to strengthening the support base. The increase in trading volume suggested a brief recovery.
Analysts noted that the “inverted bullish candlestick” pattern formed in July offers hope for price trends. This pattern is characterized by a long upper wick and a small body with almost no lower wick. The pattern’s indication:
This formation could signal an early bullish reversal, showing bulls’ interest in re-entering the market after downtrends.
Nevertheless, technical analyses suggest that if SHIB’s price drops below the July low of $0.00001108, the bullish formation may lose its validity. Therefore, investors are advised to closely monitor existing technical indicators.
Market Expectations and Expert Opinions
The activity in the cryptocurrency market reflects global economic developments. Experts associate SHIB and similar crypto assets’ price and trading volume volatility with market dynamics and major investor actions.
Whether SHIB’s upward trend will continue in the future depends on the close observation of both technical indicators and market sentiment. Also, it is indicated that future price movements might be influenced by global developments. Steps taken by the SHIB community and major investors could significantly shape market direction.
