Darius Baruo
Jul 31, 2025 06:28
Shiba Inu trades sideways with weak bullish momentum while technical indicators suggest consolidation phase ahead for SHIB investors.
Quick Take
• SHIB currently trading with minimal 24-hour movement (-0.08%)
• Shiba Inu’s RSI at 45.23 indicates neutral momentum with potential for directional breakout
• Coinbase Base network integration triggered 16,717% burn rate spike but failed to impact SHIB price significantly
What’s Driving Shiba Inu Price Today?
The most significant recent development for Shiba Inu occurred on July 29th when SHIB expanded into Coinbase’s Base network, triggering an extraordinary 16,717% spike in the burn rate. Over 600 million SHIB tokens were destroyed within just two days, representing a massive deflationary pressure that theoretically should support price appreciation. However, this technical milestone has yet to translate into meaningful SHIB price movement, highlighting the disconnect between fundamental developments and market sentiment.
Earlier market weakness from July 23rd continues to cast a shadow over SHIB’s performance. The token experienced a sharp 7.86% decline that day, erasing the previous week’s impressive 16% gains. This selloff aligned with broader altcoin market weakness, demonstrating how SHIB price remains susceptible to macro crypto market trends despite positive ecosystem developments.
The current trading environment reflects cautious market sentiment, where even significant technical improvements like network expansions and increased burn rates fail to generate immediate bullish momentum. This suggests traders are waiting for broader market confirmation before committing to new SHIB positions.
SHIB Technical Analysis: Neutral Signals Point to Consolidation
Shiba Inu technical analysis reveals a mixed picture with the token currently displaying weak bullish momentum. The most telling indicator is Shiba Inu’s RSI reading of 45.23, placing SHIB in neutral territory with room to move in either direction. This SHIB RSI level suggests the token isn’t oversold but also lacks the momentum needed for a significant breakout.
The MACD histogram shows bearish momentum for SHIB, with the indicator sitting slightly below the signal line. This bearish divergence indicates that selling pressure remains present, though the magnitude suggests consolidation rather than aggressive selling. Shiba Inu’s Stochastic indicators paint a similar picture, with %K at 21.98 and %D at 15.47, both in oversold territory but showing signs of potential reversal.
SHIB’s position within the Bollinger Bands reveals interesting dynamics. The %B position of 0.2071 places Shiba Inu in the lower portion of the band, suggesting the token has room to move higher before encountering resistance. However, the lack of significant volatility, as measured by the Average True Range, indicates limited conviction from both buyers and sellers.
Shiba Inu Price Levels: Key Support and Resistance
Based on current technical analysis, Shiba Inu support levels appear well-established at current price ranges. The immediate support zone has held firm despite recent selling pressure, providing a foundation for potential recovery. Traders should monitor how SHIB price reacts at these levels, as a breakdown could signal further weakness ahead.
On the upside, SHIB resistance levels align with recent highs where selling pressure emerged. The immediate resistance represents the first hurdle for any bullish momentum, while stronger resistance levels coincide with significant technical barriers that have previously rejected price advances.
The SHIB/USDT trading pair on Binance shows consolidation patterns that suggest a potential breakout in either direction. Volume analysis indicates that any sustained move above immediate resistance could trigger momentum buying, while a break below key support might accelerate selling pressure.
Should You Buy SHIB Now? Risk-Reward Analysis
For conservative traders, the current environment suggests waiting for clearer directional signals before establishing new SHIB positions. The neutral RSI reading and mixed technical indicators don’t provide strong conviction for either bulls or bears, making position sizing crucial for risk management.
Aggressive traders might consider the current levels attractive given the recent burn rate developments and network expansion news. Based on Binance spot market data, the risk-reward profile favors small speculative positions with tight stop-losses below key support levels. The potential catalyst from the Coinbase Base integration could provide upside surprise if broader market sentiment improves.
Swing traders should focus on the technical breakout levels, either above immediate resistance for long positions or below support for short opportunities. The low volatility environment means that any significant move could generate outsized returns, but patience is required to wait for confirmation signals.
Risk management remains paramount given SHIB’s correlation with broader altcoin market movements. Position sizes should account for potential spillover effects from Bitcoin and Ethereum price action, which historically influence SHIB price direction significantly.
Conclusion
Shiba Inu finds itself at a technical crossroads where positive fundamental developments haven’t yet translated into price appreciation. The massive burn rate spike and Coinbase Base network integration provide medium-term bullish catalysts, but near-term SHIB price action depends heavily on broader market sentiment and technical breakout confirmation. Traders should monitor the next 24-48 hours for volume expansion and directional clarity, with key levels clearly defined for both bullish and bearish scenarios.
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