Shiba Inu Price Analysis: SHIB Faces $100M Sell-Off Despite ETH Rally

Shiba Inu’s price has experienced a sell-off despite the recent rally in Ethereum. On-chain data shows that short-term traders are exiting their SHIB positions, causing concerns of a potential breakdown below the $0.000015 level. The recent appearance of Donald Trump at the Bitcoin Nashville conference was expected to boost bullish sentiment in the crypto market, but investors’ attention seems to be focused on mega-cap assets, leaving the memecoin sector struggling for traction. Bearish traders have dominated the short-term market momentum for Shiba Inu since the sell-the-news cycle following the launch of the Ethereum ETFs on July 22. This increased volatility has led investors to adopt a more cautious trading outlook towards Ethereum-hosted assets, including SHIB. Data from IntoTheBlock’s Exchange Order books reveals a significant sell-wall forming, with traders placing orders to sell over 5.9 trillion SHIB at an average price of $0.000017, representing a potential sell-off worth over $100 million. In contrast, there are orders for only 3.4 trillion SHIB from prospective buyers, indicating an excess supply of approximately 2.5 trillion SHIB in the market. This oversupply typically exerts downward pressure on the asset’s prices. Additionally, other top-ranked cryptocurrencies like XRP, BCH, and ETH have outperformed Shiba Inu in the past week, suggesting that short-term SHIB traders may be inclined to sell their holdings and reinvest in assets that have performed better within the monthly timeframe. The price forecast for SHIB indicates that bulls need to defend the $0.000015 support level to prevent further downside. The Donchian Channel highlights a tight trading range for SHIB, with an upper limit of $0.00002151 and a lower limit of $0.000015783. The Relative Strength Index is currently at 42.39, indicating bearish territory but not yet oversold. This suggests there may be further room for a decline before reaching oversold conditions. Key support lies at $0.000015783, and a break below this level could lead to a steeper decline towards $0.00001400.