SHIB prices surged 40%, and the rally subsided. Can the bulls recover?

Shiba Inu prices give up 40% gains, and bulls defend key support

Shiba Inu prices have surrendered most of their previous 40% gains after encountering short pressure around US$0.000058. Bulls are currently defending the newly established support area around US$0.0000045.

Summary

SHIB prices surged nearly 40% at one point before falling back to about US$0.000047. The daily ADX indicator rose to 31.03, confirming that volatility has evolved into a stronger trend market. The 4-hour chart shows immediate support between $0.00000444 and $0.0000466. Liquidation data showed intensive leverage around $0.000045, increasing the risk of another surge in volatility.

SHIB price momentum weakens

Data shows that the SHIB price traded around US$0.0000468 on July 31, after its vertical pull-off above US$0.0000054 encountered a large number of sell-offs. The token briefly touched approximately US$0.000058 during the breakout period, up nearly 40% from its bottom of approximately US$0.000041 before the rally. However, the long upper shadow on the 4-hour chart suggests that bears quickly absorbed buying demand near the peak. Subsequently, the SHIB formed a series of lower highs, eventually stabilizing between US$0.000046 and US$0.000048.

The correction sent the SHIB down by about 20% from its intraday high, but the token remained above the price range it had been in throughout most of July. This difference is important because prices have not yet fully retreated to the breakthrough point. According to reports, the active participation of South Korean retail investors, the significant increase in token burning and the re-entry of whale funds jointly promoted this round of gains. However, rapid reversals suggest that some traders are using sudden liquidity expansions to take profits rather than establish long-term positions.

The 4-hour chart shows that bulls are defending support for

The 4-hour structure of the SHIB has shifted from vertical pull-up to tight consolidation. The token is currently trading near the 20-cycle and 50-cycle simple moving averages, at US$0.0000466 and US$0.00000468 respectively. Holding this area will allow buyers to build a higher bottom after a breakthrough. Stronger support is located in the 100-cycle SMA (approximately $0.0000444) and the 200-cycle SMA (approximately $0.0000437). Both moving averages are rising and the SHIB continues to trade above them, preserving the short-term recovery structure.

MACD indicator signals are less clear. After the previous bullish impulse has subsided, its MACD line and signal line have converged near the zero axis. This suggests that selling momentum has slowed, but buyers haven't gathered enough strength to launch another sustained rally. A 4-hour close above $0.000048 would be an early bullish signal. Subsequently, SHIB will face resistance at US$0.000050, followed by the supply area after the breakthrough, between US$0.000052 and US$0.0000054.

SHIB liquidation heat chart warning may sweep towards US$0.000045

The 3rd liquidation heat chart shows that SHIB is currently trading between two significant leveraged clusters. The largest concentration area under the current market is located around $0.0000450 to $0.0000452. If SHIB falls below the bottom line of $0.000046, this bright liquidity band could attract price downward, which could trigger the liquidation of leveraged long positions. Below the area, there is additional liquidity around approximately $0.000044. If prices fall below these two areas, they will give up most of the breakthroughs and expose a July bottom of approximately $0.000041.

is relatively dispersed. The first meaningful bands appear around $0.000048 and $0.000049, with another cluster around $0.000050. Clearing these positions could trigger short squeeze, but SHIB must first overcome the resistance on its moving average on its 4-hour chart. Therefore, the liquidation structure predicts that fluctuations will continue. Before either party establishes control, the price may move towards $0.000045.

Daily indicators retain SHIB's recovery attempt

Despite the suppression, the SHIB's daily chart still contains a positive signal: prices are still above the supertrend indicator support level at approximately US$0.0000444. The indicator recently turned from bearish to bullish after its breakthrough. A daily close below that level would reverse this improvement and increase the possibility of a price falling towards $0.000042. The average trend index has risen from below 20 to 31.03. When an ADX reading above 25, it usually indicates that the trend is strengthening, but the indicator does not determine whether the trend will remain bullish or turn bearish.

For bulls, the next confirmation signal would require the price to break through $0.000049 and then successfully recover $0.000052. Breaking through the rebound high of about $0.000058 would reopen the path to $0.000060 and the May resistance area (about $0.000064). Commenting on the larger structure of SHIB, anonymous analyst SHIBMoral said: "The bottom seems to be holding for the time being. We are not out of danger yet." The analyst said the prospects for the rebound were good, but said the SHIB was still testing resistance through weekly price behavior and relative strength indicators.

The significance of this technical form for US traders

The next move of SHIB may also depend on broader risk appetite during US trading hours. Memoins typically have higher volatility than bitcoin and large-cap altcoins, making them more sensitive to changes in interest rate expectations and geopolitical risks. In the short term, maintain a neutral stance above US$0.0000444 and become more active if SHIB recovers US$0.000049. A daily close below $0.0000444 would invalidate the short-term bullish structure and bring July lows back into view. Bulls retained some of their breakthrough results, but failed to effectively break through $0.000054 suggests that another rebound requires stronger and more sustained buying demand.