Shiba Inu Rises 15% Mid-July: Opportunities and Risks Amid Price Correction

Market Review: After a 15% pump, the price retraced.

In mid-July, influenced by the overall market risk appetite increase and the driving factors of Dogecoin (DOGE), SHIB experienced a rapid pump, rising from around 0.000013 to 0.00001597 USD, with an increase of over 15%, setting a new high in several months.

However, as of July 31, according to Gate.io market data, the current SHIB/USDT price is $0.000013088, with a highest point in the past 24 hours of $0.000013113 and a lowest point of $0.000012252. The fluctuation range has noticeably narrowed, entering a consolidation phase.

The logic behind the pullback

The main factors behind this price correction include three aspects:

• Technical profit-taking: A large number of short positions were accumulated during the rise, and the profit-taking signal was triggered when the price approached 0.000016 USD.
• Market risk appetite cools: BTC and ETH experienced fluctuations and adjustments this week, leading to an overall contraction in the sentiment of the meme sector.
• Community interest declines: Google Trends and Reddit discussion heat have dropped over 20% from the peak in mid-July, and funding attention has weakened.

This type of adjustment is a normal technical correction that helps to clear floating capital and stabilize support.

Opportunities indicated by technical indicators

From a technical perspective:

• The moving average system is being consolidated: the current price has fallen below MA5 and MA10, and is near MA30 and MA60 (which are 0.00001294 and 0.00001305 dollars, respectively). This area is the key support zone for this adjustment.
• Signs of a turning point in trading volume: The 24-hour trading volume is 71.346 billion SHIB. Although it is lower than the peak during the pump phase, the volume has decreased during the correction process, indicating that the selling pressure is not strong.
• The RSI indicator is close to 45: it is at the edge of being oversold. If accompanied by a pump in volume, a technical rebound is expected.

Short-term support and potential rebound targets

At the current stage, investors can pay attention to the following price points:

• Key support level: 0.00001280 USD, where large buy orders are accumulated, is the first line of defense; if it breaks down, it will test the 0.00001200 range.
• Stage rebound target: If it can stay above 0.00001350 and hold steady, it is expected to challenge 0.00001450 and even test the previous high of 0.00001590 again.
• Active trading range: The order book shows that buying and selling are active between 0.00001300 - 0.00001310 dollars, and short-term consolidation may continue.

Investment advice: Wait and see or layout?

The current market is still in a stage of tug-of-war between bulls and bears. It is recommended that novice investors respond flexibly according to their own style.

• Conservative type: You can wait for the price to stabilize above 0.00001350 before entering, avoiding the failure of bottom-fishing at the end of the consolidation.
• Aggressive: You can try to place a small position around 0.00001280 and set a stop loss below 0.00001200 to speculate on a rebound.
• Long-term investors: You can continue to hold your coins and wait for macro trends to confirm, especially for the pump opportunities after BTC regains strength.