Despite Losing 8%, Shiba Inu Still Poised for Monthly Green Close

Shiba Inu Struggles to Hold Gains Despite Aggressive Token Burns, Yet Set for Monthly Advance

Shiba Inu (SHIB), the second-largest memecoin by market capitalization, remains on track to close July with a double-digit gain—even as recent price action highlights investor hesitation and shifting preferences toward utility-focused crypto assets.

The token slid to $0.00001263 on Tuesday, its lowest level since July 10, representing a weekly decline of nearly 9% and a 2.28% drop over the past 24 hours. SHIB’s decline reflects broader weakness in memecoins, with the CoinDesk Memecoin Index falling 10% over the same period.

Despite a notable surge in burn activity—600 million tokens were destroyed in a single session, marking a 16,710% increase in the burn rate—price action failed to respond positively. Analysts say this underscores the market’s shifting appetite toward blockchain applications and away from speculative meme plays.

Technical Breakdown

24h Drop: Price fell from $0.000013107 to $0.000012809.
Resistance: Capped at $0.000013184 during the 17:00 UTC session.
Support: Found at $0.000012663, supported by 1.25 trillion SHIB in volume.
Volatility: Price traded within a 4.12% bandwidth; intraday lows deepened after 10:00 UTC.
Late Session Activity: A modest 0.25% recovery occurred in the final hour.
Volume Spike: 43.5 billion SHIB traded between 13:57–13:59 UTC, signaling short-covering and high-frequency activity.
Pattern Formed: A three-phase sequence of consolidation, distribution, and a short-lived rebound.

Competitive Pressure

While SHIB burned tokens at an accelerated pace, capital flows have increasingly favored newer alternatives like BONK, PENGU, and especially utility-oriented platforms such as Remittix. This migration suggests that traders are reassessing exposure to traditional memecoins.

Chart Watch: Inverted Hammer Takes Shape

Despite recent weakness, SHIB’s monthly chart is on pace to print an inverted hammer candlestick—a technical signal often interpreted as a sign of bottoming or potential reversal. The long upper shadow indicates that buyers are tentatively re-entering at these lower levels, despite overall bearish pressure.