Shiba Inu (SHIB) has seen a notable drop in price recently, erasing more than half of the gains it achieved in July. Currently trading at $0.00001297, the meme coin has faced headwinds, including a 16% decline over the past week.
While this downturn may seem concerning, August is historically a moderately bearish month for SHIB, so investors may not face extreme losses.
Shiba Inu Is Losing Strength
Historical data suggests that Shiba Inu tends to experience a return of -1.32% on average during the month of August, with the median return for the last four years at -1.04%. These statistics indicate that while SHIB may face volatility, the price is likely to close lower than its current value by the end of the month.
Given the historical trend of slight losses during the month, investors may expect continued uncertainty. This could lead to fluctuations in SHIB’s price, with potential for further decline as market conditions remain unpredictable.
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The relative strength index (RSI) has also seen a significant shift, slipping into the bearish zone below the neutral mark of 50.0. This suggests that bearish momentum is building and could continue to strengthen, driving SHIB’s price lower.
As the RSI remains in the bearish zone, it signals the possibility of further price pressure for Shiba Inu. This technical indicator often serves as a predictor of short-term price trends, and its current positioning suggests that the meme coin may face additional downward movement.
SHIB Price Decline May Continue
At the time of writing, Shiba Inu is trading at $0.00001297, having lost 16% over the past week. The meme coin has wiped out nearly half of the gains it saw in July. This decline places SHIB in a vulnerable position, with the potential to continue its downward trajectory.
Given the current market sentiment, it’s likely that SHIB will experience further declines in August. The altcoin could test the support level at $0.00001252, pushing its price even lower. If this support fails to hold, a more significant drop could occur, leading to further challenges for Shiba Inu.
However, if investor demand suddenly spikes, there could be a chance for SHIB to recover. A price push towards $0.00001435 would be a positive for the meme coin. If SHIB manages to break this resistance level, it could potentially rewrite its history by posting gains in August.
The post Shiba Inu Price’s 16% Drop Wipes Half Of July Gains; Is August In Trouble? appeared first on BeInCrypto.