Shiba Inu price surrendered much of its 40% breakout after sellers rejected the meme coin near $0.0000058, leaving bulls to defend a newly established support zone around $0.0000045.
Summary
- SHIB price surged nearly 40% before retreating to approximately $0.0000047.
- Daily ADX climbed to 31.03, confirming that volatility has developed into a stronger directional trend.
- The 4-hour chart places immediate support between $0.00000444 and $0.00000466.
- Liquidation data shows dense leverage near $0.0000045, raising the risk of another volatility spike.
SHIB price rally loses momentum
According to data from crypto.news, SHIB price traded near $0.00000468 on July 31 after its vertical rally encountered heavy selling above $0.0000054. The token briefly reached approximately $0.0000058 during the breakout, marking a gain of nearly 40% from its pre-rally base around $0.0000041.
However, the long upper wick on the 4-hour chart showed that sellers quickly absorbed demand near the peak. SHIB subsequently formed a series of lower highs before stabilizing between $0.0000046 and $0.0000048.
The pullback leaves SHIB roughly 20% below its intraday peak, although the token remains above the range that contained its price through most of July. That distinction matters because the move has not yet completed a full round trip to its breakout point.
South Korean retail activity, a sharp increase in token burns and renewed whale participation reportedly accompanied the rally. However, the rapid reversal suggests that some traders used the sudden liquidity expansion to take profits rather than build longer-term positions.
Four-hour chart shows bulls defending support
SHIB’s 4-hour structure has shifted from a vertical advance into tight consolidation.
The token is trading around its 20-period and 50-period simple moving averages, located near $0.00000466 and $0.00000468, respectively. Holding this area would allow buyers to establish a higher base after the breakout.
Stronger support sits at the 100-period SMA near $0.00000444 and the 200-period SMA around $0.00000437. Both averages are rising, and SHIB continues to trade above them, preserving the short-term recovery structure.
The moving average convergence divergence indicator is less decisive. Its MACD and signal lines have converged near zero after the earlier bullish impulse faded. This shows that selling momentum has slowed, but buyers have not yet regained enough strength to start another sustained advance.
A 4-hour close above $0.0000048 would be an early bullish signal. SHIB would then face resistance at $0.0000050, followed by the post-breakout supply zone between $0.0000052 and $0.0000054.
SHIB liquidation map warns of a sweep toward $0.0000045
The 3-day liquidation heatmap shows that SHIB is trading between two notable leverage clusters.
The largest nearby concentration sits below the market around $0.00000450 to $0.00000452. This bright liquidity band could attract price if SHIB loses the $0.0000046 floor, potentially triggering leveraged long liquidations.
Below that area, additional liquidity appears around $0.0000044. A drop through both zones would erase most of the breakout and expose the July base near $0.0000041.
Upside liquidity is comparatively scattered. The first meaningful bands appear near $0.0000048 and $0.0000049, with another cluster around $0.0000050. Clearing these positions could produce a short squeeze, but SHIB must first overcome the moving-average congestion on its 4-hour chart.
The liquidation structure therefore favors continued volatility. A sweep toward $0.0000045 could occur before either side establishes control.
Daily indicators preserve SHIB’s recovery attempt
Despite the rejection, SHIB’s daily chart contains one constructive development that is price remains above the Supertrend support at approximately $0.00000444.
The indicator recently flipped from bearish to bullish following the breakout. Losing that level on a daily closing basis would reverse the improvement and increase the chance of a decline toward $0.0000042.
Average Directional Index, or ADX, has risen to 31.03 from below 20. An ADX reading above 25 generally points to a strengthening trend, although the indicator does not determine whether that trend will remain bullish or turn bearish.
For bulls, the next confirmation would require a move above $0.0000049, followed by a successful recovery of $0.0000052. Breaking the rally peak near $0.0000058 would reopen the path toward $0.0000060 and the May resistance zone around $0.0000064.
Commenting on SHIB’s broader structure, pseudonymous analyst SHIBMortal said:
“The floor seems to be holding (so far). We are not out of the woods yet.”
The analyst described the bounce as promising but said SHIB was still testing resistance through weekly price action and relative strength.
What the setup means for US traders
SHIB’s next move may also depend on wider risk appetite during US trading hours. Meme coins generally carry higher volatility than Bitcoin and large-cap altcoins, making them more sensitive to changes in interest-rate expectations and geopolitical risk.
The immediate setup remains neutral above $0.00000444 and turns more constructive if SHIB reclaims $0.0000049. A daily close below $0.00000444 would invalidate the short-term bullish structure and place the July lows back in focus.
Bulls have preserved part of the breakout, but the failed move above $0.0000054 shows that another rally will require stronger and more persistent demand.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
