Shiba Inu Sheds 6% Amid Tariff Pressures, But Bullish Reversal Pattern Offers Hope

Shiba Inu (SHIB) slumped 6% over a 24-hour period ending August 1, dragged lower by macro headwinds including renewed U.S. tariffs under President Donald Trump and a strengthening U.S. dollar, which also pressured broader crypto markets.

SHIB fell from $0.000013 to $0.000012, marking its lowest level since July 9 and extending its correction from the July 21 local high near $0.000016. Despite the sharp pullback, technical indicators suggest the potential for a bullish reversal.

The decline came amid a notable rise in exchange-held SHIB, which surged to 84.9 trillion tokens on July 28, signaling possible distribution by large holders. This occurred even as accumulation activity continued, with 4.66 trillion SHIB—worth $63.7 million—purchased by market participants, according to CoinDesk’s market insights model. Additionally, SHIB’s burn rate spiked 16,700%, with over 602 million tokens destroyed in coordinated burns.

Technical Highlights (Past 24 Hours):

• Rejection at $0.000013 triggered high-volume selling.
• A strong demand zone formed at $0.000012, where 1.19 trillion tokens were absorbed.
• Breakout volume of 90.51 billion SHIB supported a brief recovery above key support.

Outlook:
Despite recent losses, SHIB’s monthly chart shows a potential reversal signal in the form of an “inverted bullish hammer” — a candlestick pattern characterized by a small body and a long upper wick. This formation often signals a shift in market sentiment when appearing after a downtrend, hinting that bulls may be preparing to regain control.

However, a sustained drop below the July low of $0.00001108 would invalidate the bullish setup, suggesting further downside risk.