SHIB Price Drops 5% Despite Whale Accumulation and Base Network Expansion

Quick Take

• SHIB currently experiencing a 5.11% decline in 24-hour trading • Shiba Inu's RSI sits at 47.56, indicating neutral momentum with potential for reversal • Base Network expansion announced today offers long-term scalability benefits • Whale activity surged 25,587% recently, with large holders now controlling 74% of supply

What's Driving Shiba Inu Price Today?

Today's SHIB price action reflects a tug-of-war between positive developments and security concerns. The most recent catalyst came from Shiba Inu's announcement of expansion to the Base Network, aimed at enhancing scalability and transaction efficiency. This technical advancement represents a significant step forward for the ecosystem's infrastructure capabilities.

However, the SHIB team's simultaneous release of a scam alert regarding phishing attempts involving fake Bitget Web3 emails has created some uncertainty in the market. Security concerns often trigger short-term selling pressure as traders exercise caution, which may explain today's 5.11% decline despite the positive network expansion news.

The broader context reveals extraordinary whale interest in SHIB. Over the past week, whale activity exploded by 25,587%, culminating in large holders now controlling 74% of the total supply. This level of whale dominance typically indicates institutional or high-net-worth investor confidence, even as retail sentiment may be temporarily dampened by security alerts.

Earlier in July, SHIB price surged 30% driven by AI integration developments and increased token burn rates. These fundamental improvements continue to support the long-term bullish thesis, suggesting that today's decline may represent a temporary consolidation rather than a trend reversal.

SHIB Technical Analysis: Neutral Signals Point to Potential Reversal

Shiba Inu technical analysis reveals a mixed but potentially constructive setup. The SHIB RSI reading of 47.56 places the token in neutral territory, neither overbought nor oversold. This positioning often precedes significant directional moves, making it a critical level to monitor for breakout signals.

The SHIB MACD histogram shows bearish momentum at -0.0000, indicating recent selling pressure. However, the minimal magnitude suggests this bearish momentum is weakening rather than accelerating. Shiba Inu's Stochastic indicators present a more concerning picture, with %K at 19.25 and %D at 33.64, signaling oversold conditions that could trigger a relief rally.

Shiba Inu's Bollinger Bands positioning at 0.3056 indicates the token is trading in the lower portion of its recent range. This compression often precedes volatility expansion, particularly when combined with the current neutral RSI reading.

The overall trend classification remains bullish despite today's decline, suggesting that the recent 30% July surge has not been invalidated by current price action. Based on Binance spot market data, the daily Average True Range indicates moderate volatility, providing opportunities for both swing and day traders.

Shiba Inu Price Levels: Key Support and Resistance

Current Shiba Inu support levels become critical as the token tests lower ranges following today's decline. The immediate support zone should provide the first test of buyer interest, particularly given the significant whale accumulation reported this week.

SHIB resistance levels will likely be tested if security concerns subside and focus returns to the positive Base Network expansion. The strong resistance level represents a key target for any recovery move, especially if whale accumulation continues at current rates.

The SHIB/USDT trading pair on Binance shows volume of $27,343,126 in the past 24 hours, indicating sustained interest despite the price decline. This volume level suggests that current selling pressure is being met with buying interest, which could stabilize the SHIB price in the near term.

Traders should monitor the pivot point level closely, as a break above could signal the beginning of a recovery toward immediate resistance, while a break below might target the strong support zone.

Should You Buy SHIB Now? Risk-Reward Analysis

The current SHIB price presents different opportunities depending on trading style and risk tolerance. For swing traders, the combination of oversold Stochastic readings and neutral RSI creates a potentially attractive entry point, particularly given the 74% whale dominance that suggests strong hands are accumulating.

Day traders should focus on the immediate support and resistance levels, using the current volatility to capture short-term price movements. The bearish MACD momentum suggests caution for momentum-based strategies until clearer directional signals emerge.

Long-term investors may view today's decline as an opportunity to accumulate before the Base Network integration benefits materialize. The 30% July surge demonstrates SHIB's ability to respond positively to fundamental developments, and the current expansion represents another significant milestone.

Risk management remains crucial given the security alert issued by the SHIB team. Setting stop-loss levels below the strong support zone protects against further downside if security concerns escalate or broader market sentiment deteriorates.

Position sizing should account for the high whale concentration, which can create sudden price movements in either direction. The 25,587% increase in whale activity demonstrates how quickly sentiment can shift in the SHIB market.

Conclusion

SHIB price faces a critical juncture as positive technical developments compete with immediate security concerns. The Base Network expansion provides a strong fundamental catalyst for future growth, while the extraordinary whale accumulation suggests institutional confidence remains intact. However, traders should remain cautious over the next 24-48 hours as the market digests both the expansion news and security alert. The neutral RSI and oversold Stochastic readings suggest a potential reversal opportunity, making current levels worth monitoring for entry signals in the SHIB/USDT pair.