Shiba Inu Coin Bulls Fighting Bearish Setup as SHIBUSD Pair Narrowly Avoids Confirming Descending Triangle Pattern

The Shiba Inu coin recently defended against falling below a key bearish technical pattern, offering short-term hope for bulls. However, despite this resilience, several bearish indicators still cloud the token’s outlook.

Shiba Inu (SHIB) prices recently managed to avoid confirming a bearish technical setup as bulls attempted to counter the selling pressure.

The descending triangle pattern, known for signaling bearish continuation, features a sloping upper trendline that marks lower highs, converging with a flat lower trendline that indicates weakening support.

As prices approached the apex of the triangle, bulls pushed back against the selling pressure, preventing confirmation of the bearish setup.

If SHIB prices had confirmed the descending triangle, it could have signaled a potential downside target of around $0.00000457, indicating a nearly 65% drop from current levels. However, bulls managed to keep SHIB prices within the pattern, at least for now.

The SHIB futures market highlighted bearish sentiment, with open interest (OI) in Shiba Inu coin futures dropping sharply from approximately $104 million in early June 2024 to below $20 million in early September 2024.

This decline signaled reduced speculative interest and suggested traders lost confidence in significant price moves. Lower OI, typically indicating fading momentum, suggested the market was hesitant to engage in riskier bets on SHIB’s price direction.

Furthermore, the OI-weighted funding rate remained predominantly negative throughout August and early September 2024, with only brief positive spikes.

Negative funding rates, where short sellers pay long positions, reflected a broader market expectation of further downside for Shiba Inu coins.

Santiment data provided additional insight into the bearish sentiment. Wallets holding between 10 million and 100 million SHIB, as well as those holding 100 million to 1 billion SHIB, showed a continuous decrease in holdings since July, suggesting that larger holders were offloading their SHIB holdings.

Interestingly, even smaller wallets holding between 100,000 and 1 million SHIB showed a recent decline starting on September 7, which could indicate growing selling pressure from retail investors.

This distribution of holdings across different wallet sizes indicated a broad-based selling pressure. As the smaller wallets decreased their SHIB holdings, the selling pressure shifted toward retail investors.

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