Shiba Inu (SHIB) Coin Struggles to Maintain Momentum Despite New Ecosystem Updates

Shiba Inu (SHIB) has struggled to maintain momentum despite recent developments around SHIB DAO and new ecosystem updates. The SHIB coin price has seen limited movement.

Shiba Inu (SHIB) price has failed to capitalize on recent developments, including the introduction of SHIB DAO and new ecosystem updates. The SHIB coin price has shown limited movement, staying range-bound as whale accumulation continues, but retail traders seem disengaged.

Shiba Inu Coin’s Limited Price Action Despite DAO Launch, Mixed Futures Signal

Shiba Inu's futures market presents a mixed picture, with positive funding rates and flat open interest suggesting an underlying bearish potential. Positive funding rates indicate that long traders pay short traders to maintain their positions, reflecting a bullish bias.

However, the flat open interest shows a lack of new participants entering the market or existing traders expanding their positions. The stagnation suggests weak conviction in the bullish momentum.

With over-leveraged long positions and little fresh buying interest, the Shiba Inu coin is vulnerable to a potential long squeeze if prices begin to fall, accelerating downward pressure.

A long squeeze occurs when falling prices force over-leveraged long positions to sell, accelerating the downward trend.

Adding to the uncertainty, on-chain data from Santiment shows a significant divergence between large and smaller holders.

The Santiment chart highlights diverging behavior among different SHIB holder categories. Large holders (100 million to 1 billion SHIB, red line) have steadily reduced their holdings, signaling significant distribution.

Similarly, medium-sized holders (10 million to 100 million SHIB, yellow line) are also selling off, suggesting a broader loss of confidence in SHIB’s price potential.

In contrast, smaller holders are accumulating. Retail wallets holding 10,000 to 100,000 Shiba Inu Coins (purple line) and 100,000 to 1 million SHIB (brown line) show steady accumulation. Larger retail holders (1 million to 10 million SHIB, blue line) follow the same trend, though accumulation has slowed recently.

This shows growing interest from smaller investors, but the cumulative buying pressure from retail may not be enough to offset the whale selloffs.

Without broader participation from the larger wallet cohorts, SHIB coin could struggle to maintain momentum, leaving it vulnerable to short-term price swings.

Bearish Setup Adds To SHIB’s Woes

While the market participants remain undecided, a bearish technical setup called the ‘descending triangle‘ adds to the selling pressure against the SHIB USD pair.

Analysts recognize the descending triangle as a bearish continuation pattern. The configuration features a declining upper trendline that compresses price action into lower highs, while a flat lower trendline serves as consistent but weakening support.

The pattern signals intensifying selling pressure, resulting in progressively weaker rallies that struggle to breach resistance.

In this setup, traders estimate the potential downside by measuring the maximum height of the triangle. Pepe coin’s price recently broke out of this descending triangle, only for bulls to push it back within the pattern.

However, if the Shiba Inu Coin's price confirms the bearish setup, the SHIB USD pair could plummet by over 65%, reaching a target near $0.00000457.

A breakout below the pattern in the current market climate could be catastrophic for SHIB prices, especially considering the indecision among market participants.

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