Why SHIB and SOL Show Early Bullish Signals
August 10 brings a mixed crypto tape. Shiba Inu (SHIB) and Solana (SOL) are flashing early strength, but the broader market still lacks the conviction for a full recovery. Bitcoin hovers near $61,000, and Ether trades around $2,650, keeping traders cautious.
The source notes that “the market is certainly far from being ready for a proper retrace, even though some assets show a bullish dynamic.” That means we are in a selective rally—not a broad one. SHIB and SOL are leading, but can they sustain that momentum?
Solana’s Network Metrics Point to Sustained Demand
SOL has climbed roughly 12% over the past week, trading near $145. Its daily active addresses have stayed above 1.5 million for most of August, a sign that real usage supports the price. The network’s total value locked (TVL) also remains near $4.8 billion, showing capital is not fleeing.
But SOL faces resistance at $150, a level that has rejected price three times since late July. If buyers cannot push through, a pullback to $135 is likely. The key is whether derivatives traders add to long positions—funding rates have turned slightly positive, but not with the conviction seen in previous rallies.
Shiba Inu’s Token Burns and Social Buzz Drive Sentiment
SHIB has gained 8% in 24 hours, trading at $0.00001350. The recent token burn rate jumped 400% after a community-led campaign removed over 1.2 billion SHIB from circulation. That reduction in supply, paired with rising social mentions, has fueled retail interest.
However, SHIB’s price still sits 70% below its 2021 peak. The burn mechanism alone rarely sustains a rally; it needs consistent buying pressure. On-chain data shows large holders (whales) have increased their SHIB positions by 2% this week, but smaller wallets are still net sellers. That split suggests caution among the broader retail base.
Hyperliquid and BNB Add Context to the Mixed Tape
Hyperliquid (HYPE) has also outperformed, up 15% in the last three days, trading at $22.40. Its perp DEX volume hit $1.1 billion on August 9, a record for the platform. Still, HYPE is a smaller-cap asset with higher volatility, so its moves are less informative for the broader market.
Binance Coin (BNB) remains flat at $520, despite Binance’s legal settlement over compliance issues. BNB’s lack of movement suggests institutional traders are waiting for clearer regulatory direction. The correlation between BNB and BTC has fallen to 0.6, the lowest in a month, meaning BNB is not following the market’s leads.
Key Levels to Watch for a Bullish Breakout
For SOL, a daily close above $150 would confirm a bullish breakout, targeting $165. For SHIB, the immediate hurdle is $0.00001400; a break above that could open a run to $0.00001550. If both fail to hold current support ($135 for SOL, $0.00001280 for SHIB), the market will likely see a broader retracement.
Macro data this week could shift sentiment. The U.S. CPI report due August 13 and Fed Chair Powell’s speech on August 15 will influence risk assets. A hot CPI could strengthen the dollar and pressure cryptos; a cool number could fuel another leg up.
Watch the next 48 hours: if SOL holds above $145 and SHIB stays above $0.00001300, bulls may gain control. A break below those levels would signal that the recent strength was a dead-cat bounce, not a trend change.
Comments are closed.