SHIB Price Faces 16% Drop Prediction as Bearish Momentum Builds

SHIB Price Faces 16% Drop Prediction as Bearish Momentum Builds - Blockchain.News

Quick Take

• SHIB currently trading with 3.78% daily gains despite bearish outlook • Shiba Inu's RSI at 43.13 indicates neutral momentum with bearish MACD signals • Google Gemini's AI predicts 16.388% price drop by month-end citing weak technicals

What's Driving Shiba Inu Price Today?

The most significant development affecting SHIB price this week came from Google's Gemini AI platform, which issued a bearish forecast predicting Shiba Inu could decline 16.388% to reach $0.00001 by August 31, 2025. This prediction specifically cited weak technical indicators and reduced token burn activity as primary factors driving the negative outlook.

Adding to the bearish sentiment, market analysts have identified a deepening bearish trend for SHIB, with predictions suggesting continued downward momentum throughout mid-August 2025. This analysis comes despite ongoing whale accumulation and recent token burn activities that traditionally provide price support.

The timing of these negative forecasts coincides with Shiba Inu celebrating its 5th anniversary, where the SHIB team highlighted the token's remarkable 21,600,000% gains since inception. However, this milestone has been overshadowed by current market concerns and technical weakness.

Despite the negative predictions, SHIB price has shown resilience with a 3.78% gain in the past 24 hours, suggesting some trader optimism or potential oversold conditions driving short-term buying interest.

SHIB Technical Analysis: Mixed Signals Emerge

The current Shiba Inu technical analysis reveals a complex picture with conflicting signals across different timeframes. SHIB RSI stands at 43.13, positioning the token in neutral territory but leaning toward oversold conditions. This RSI reading suggests that while selling pressure exists, Shiba Inu may be approaching levels where contrarian buyers typically emerge.

Shiba Inu's MACD indicators paint a more concerning picture, with the MACD histogram showing bearish momentum. The negative MACD histogram value of -0.0000 indicates that bearish momentum is building, though the extremely small values suggest the trend change is still developing rather than accelerating rapidly.

The Stochastic indicators for SHIB show more pronounced bearish signals, with the %K at 27.34 and %D at 22.12. These readings place Shiba Inu in oversold territory, which could signal either continued selling pressure or an impending bounce if buyers step in at these levels.

Shiba Inu's Bollinger Bands positioning at 0.2805 indicates the token is trading in the lower portion of its recent price range, supporting the oversold narrative suggested by other technical indicators.

Shiba Inu Price Levels: Key Support and Resistance

Based on Binance spot market data, traders should monitor several critical levels for SHIB/USDT trading decisions. The current technical setup suggests Shiba Inu support levels will be crucial in determining whether the bearish predictions materialize or if the token can find footing for a recovery.

The immediate support zone represents the first line of defense for SHIB bulls, while any breakdown below this level could accelerate the decline toward Google Gemini's predicted target of $0.00001. Conversely, SHIB resistance levels above current prices will need to be reclaimed for any meaningful bullish reversal.

Traders should pay particular attention to how SHIB price reacts at these key levels, as volume confirmation will be essential for validating any breakout or breakdown attempts. The 24-hour trading volume of $12,130,266 on Binance spot provides adequate liquidity for most trading strategies.

Should You Buy SHIB Now? Risk-Reward Analysis

The current SHIB price action presents a challenging decision matrix for different types of traders. For aggressive traders, the oversold technical conditions suggested by SHIB RSI and Stochastic indicators might present a short-term bounce opportunity, particularly if the token holds above immediate Shiba Inu support levels.

Conservative investors should exercise caution given the bearish forecasts from Google's AI platform and the broader negative sentiment surrounding Shiba Inu technical analysis. The prediction of a 16.388% decline provides a clear risk parameter for position sizing and stop-loss placement.

Swing traders might consider waiting for more definitive signals, such as SHIB RSI moving below 30 for oversold entries or above 50 for trend confirmation. The neutral RSI reading at 43.13 suggests the token is in a transition phase where patience may be rewarded.

Risk management becomes particularly important given the conflicting signals between short-term price strength (3.78% daily gain) and medium-term bearish predictions. Position sizes should reflect the high uncertainty in current market conditions.

Conclusion

SHIB price faces a critical juncture as technical indicators suggest oversold conditions while AI-driven predictions point toward further declines. The next 24-48 hours will likely provide clarity on whether the recent 3.78% gain represents a dead-cat bounce or the beginning of a technical recovery. Traders should monitor how Shiba Inu responds to key support levels while keeping Google Gemini's $0.00001 target in mind as a potential downside objective. The conflicting signals between oversold technicals and bearish forecasts make careful risk management essential for any SHIB trading strategy.

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