Shiba Inu evaporated 16%, wiping out half of its gains in July.

Recently, Shiba Inu (SHIB) has fallen sharply, wiping out more than half of the gains achieved in July. Currently trading around $0.00001297, this memecoin has faced many difficulties, including a 16% decrease over the past week.

Although the downturn seems concerning, August is usually a month with not too much volatility for SHIB, so investors may not have to suffer significant losses.

Shiba Inu is losing strength

Historical data shows that SHIB tends to fall by about -1.32% in August, with an average decline over the past four years of -1.04%. This statistic indicates that although SHIB may face volatility, the price is likely to close lower than the current value by the end of the month.

With the recent downtrend, investors expect the volatility to continue, with the possibility of SHIB falling further as market conditions remain unpredictable.

The performance of SHIB in the past | Source: CryptorankThe relative strength index (RSI) has also seen a significant shift, sliding down into the bearish zone below the neutral mark of 50.0. This indicates that a downtrend is forming and may continue to strengthen, pulling the price of SHIB lower.

The fact that the RSI remains in the falling zone indicates continued upward pressure. This technical indicator typically serves as a predictor of short-term price trends, and its current position suggests that this memecoin may still maintain its downward momentum.

Relative Strength Index (RSI) of SHIB | Source: TradingView## SHIB may continue to fall

Currently, Shiba Inu (SHIB) is trading around $0.00001297, falling 16% over the past week. This memecoin has wiped out nearly half of its growth in July, putting SHIB in a vulnerable position, with the potential to continue its downward trend.

With the current market sentiment, it is likely that SHIB will continue to fall in August. This altcoin may test the support level at $0.00001252 in the near future. If it cannot hold this level, a stronger decline may occur.

SHIB Price Analysis | Source: TradingViewHowever, if investor demand suddenly surges, SHIB may have a chance to recover. Breaking through $0.00001435 would be a positive signal for this memecoin, helping SHIB record a rare increase in August and improve technical prospects.

Vincent