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The birthday of Ethereum and Shiba Inu: why the crypto market has fallen

Bits.media / 02.08.2024 / 18:28
The birthday of Ethereum and Shiba Inu: why the crypto market has fallen
After a short period of growth associated with the withdrawal from the election race of the current US president, cryptocurrencies are declining in price again. Nevertheless, August promises to be a positive rather than a negative month for bitcoin and altcoins.

Bitcoin

Bitcoin decreased in price by almost 5% in the week from July 26 to August 2, 2024. After the $70,000 mark was exceeded on July 29, BTC began to adjust. The minimum price of the largest cryptocurrency by capitalization was $62,233 for a seven-day period.


Source: tradingview.com

The first reason for such a BTC movement is American political. Despite the speech of the Republican candidate Donald Trump in Nashville, the popularity of the representative of the Democratic Party Kamala Harris began to grow. She came out ahead in the swing states: 48% versus 47%. Trump has made many statements in favor of cryptocurrency, promised to include it in the strategic reserves of the United States. Harris is considered an oppositionist of the crypto industry.

The second reason is the expiration of options on August 2 in the amount of about $ 2.2 billion. In any case, this is how analysts of the Bitfinex crypto exchange see the situation. They assume that the decline will be short-term. In the long term, the forecast moderately positive.

The third reason may be that the bankrupt MtGox exchange transferred about 47,000 BTC to its customers on the Kraken and Bitstamp exchanges on July 30. Obviously, the coins could have been sold off, and as a result, the price of bitcoin fell.

From the point of view of technical analysis, BTC investors should have a cautiously positive attitude. Despite the correction, the price is still above the 50-day moving average (indicated in blue). And the RSI indicator exceeds the value of 50. Support and resistance levels: $62,233 and $70,016.


Source: tradingview.com

Fear and Greed Index  decreased compared to last week by 11 points. The current value is 57. This still speaks to the predominance of greed over fear among bitcoin investors.

Ethereum

The price of ether decreased by 3.27% from July 26 to August 2. The second largest cryptocurrency by capitalization failed to start an uptrend, although on Monday, July 29, it came close to $ 3,400. The matter did not move further, and now the ether is trading around $ 3,150.


Source: tradingview.com

The main news providers for ETH remain the recently approved spot ETFs. On July 30, it was finally possible to interrupt a series of outflows of funds that lasted four days. On August 1, exchange-traded funds again showed cash inflows. Nevertheless, the cumulative (total) outflow is $456.43 million. And all because of one single fund – Grayscale Ethereum Trust.


Source: sosovalue.xyz

And Ethereum celebrated its ninth birthday on July 30. Over the years, the project has managed to reach a market capitalization of over $400 billion, conduct 2.45 billion transactions for 20.4 million blocks. Monthly number of active users now  exceeds 7 million people, and more than 1 million validators.

From the point of view of technical analysis, globally there is a sideways trend, and locally there is a predominance of bears. The value of the ADX indicator – 21.9 speaks in favor of the first fact. In favor of the second one, the price that is below the 50-day moving average (indicated in blue). Now it is important for the ether to stay above the $3,050 mark. If this cannot be done, then a decline to $2,800 is likely. The transition to growth is possible after overcoming the resistance level of about $ 3,400.


Source: tradingview.com  

Shiba Inu

The Shiba Inu meme coin has dropped by almost 10% over the past seven days. The cryptocurrency failed to stay above $0.000017. Six trading sessions ended with a decline. At the same time, the drop was fairly uniform: on none of the days did the losses reach 3%.


Source: tradingview.com

Despite the setbacks of the last week of July, the Shiba Inu community is quite positive about the August price of the coin. The thing is that this is the month the token celebrates its birthday: four years. So far, August has been quite successful for memcoin: the average profit was 2.7%, and the median was 3.4%. This is a fairly rare fact when both indicators are they turn out to be positive which further gives crypto enthusiasts faith in the best.

Obviously, American politicians also believe in Shiba Inu. Interesting statistics on this matter results the Arkham Intelligence platform. According to her, the U.S. federal Government holds almost 55 billion SHIB tokens worth about $840,000. Shiba Inu ranks 19th in the investment portfolio of the U.S. Treasury. Bitcoin's first place is almost $13 billion.

The Shiba Inu community continues to be determined to make cryptocurrency deflationary. To this end, the project continues to burn tokens. In July 2024, more than 379 million shibs were destroyed. The total number of tokens burned is close It's getting closer to the 411 trillion mark.

From the point of view of technical analysis, bears predominate among Shiba Inu investors. This is confirmed by the fact that the price is below the 50-day (indicated in blue) and 200-day (indicated in orange) moving averages. The lines formed a death cross in mid-July, when the 50-day moving average crossed the 200-day one from top to bottom), and this is also a strong bearish signal. Support and resistance levels: $0.00001303 and 0.00001761, respectively.


Source: tradingview.com

Conclusion

Cryptocurrencies have fallen in price this week. At the same time, bitcoin, according to technical analysis, looks quite promising. Ethereum and Shiba Inu were not helped even by their birthdays.

This material and the information in it do not constitute an individual or other investment recommendation. The editorial board's opinion may not coincide with the opinions of the author, analytical portals and experts.

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