Shiba Inu Price Enters 8-Day Losing Streak as SHORT Traders Gain 26.5%

Shiba Inu Price Analysis

Shiba Inu price fell below $0.000014 on Aug 4, having lost 26.5% in an 8-day losing streak, key technical indicators highlight important resistance and support levels that could influence SHIB price action in the week ahead.

Shiba Inu Down 26.5% in 8 Consecutive Losing Days

Shiba Inu price, along global crypto markets, experienced intense volatility last week. The key bearish catalysts include the $115 million outflows from Ethereum ETFs, and US Fed’s hawkish decision to hold interest rates unchanged.

However, FXEmpire reported how the memecoin sector had received a disproportionate increase in selling pressure. Since the market volatility intensified in the aftermath of the US Fed rate pause, Shiba Inu, the second-largest meme coin by market capitalization has been stuck in a steep downtrend.

According the TradingView data, Shiba Inu’s last positive trading session was on Saturday, July 27, when it rose 0.35% to a weekly timeframe peak of $0.000018.

Since then, the SHIB/USD daily chart has registered 8 consecutive red candles, as prices tumbled by 26.55% to hit a 30-day low of $0.000013 at the date of publication on Aug 4.

SHORT Traders Deploy $1.5M Leverage

With Shiba Inu having surrendered several key support levels over the past week, market data shows that bear traders are now looking to further capitalize of the gloomy market sentiment.

Coinglass chart below tracks the balance of active leveraged LONG positions and SHORT contracts currently listed for a particular asset. This provides direct insights into how majority of investors’ short-term outlook on Shiba Inu price momentum.

Looking at the chart above, we see that after 8 consecutive losing days, majority of SHIB LONG traders have closed their positions. At the time of writing on Aug 4, there are only $345,000 worth of active SHIB LONG contracts, compared to over $1.5 million active SHORT positions.

This $1.1 million shortfall  means that Shiba Inu bears are growing more confident, applying more leverage on their SHORT positions. This LONG traders’ tardiness and unwillingness to enter new positions could  further skews the SHIB market momentum to the bears advantage in the week ahead.

SHIB Price Forecast: SHORT Traders Could Push For $0.000010 Retest

After 8 consecutive days of losses, Shiba Inu price has now fallen below $0.000014 on Aug 4, and is now approaching another critical sell-off zone.

Technical indicators highlight that failure to hold the $0.000012 support could catalyze large losses in the week ahead.

The daily chart shows SHIB trading at $0.00001343, down 5.51% in the latest session. The Donchian Channel indicates that the immediate resistance level is at $0.000016568, with another significant resistance at $0.000020151. These levels represent crucial points where bullish reversals could encounter substantial selling pressure.

On the downside, the support levels are clearly demarcated by the lower boundary of the Donchian Channel at $0.000012984. A decisive break below this level would likely accelerate the bearish trend, pushing SHIB towards the next critical support at $0.000010. The sharp decline over the past eight days, amounting to a 26.55% loss, underscores the intensified selling pressure SHIB is currently facing.

The ADR (Average Daily Range) of 0.13 indicates a relatively high volatility, suggesting that significant price swings are likely. The lack of a positive divergence in the ADR further confirms that bearish momentum is still dominant, with little indication of an imminent reversal.

Given the current bearish sentiment and the proximity to key support levels, short traders could push SHIB towards a retest of $0.000010. This scenario is increasingly plausible if the broader cryptocurrency market remains under pressure, particularly in light of macroeconomic uncertainties and growing Ethereum ETF outflows.