Shiba Inu Faces Pressure Amid Broader Market Recov

Shiba Inu Faces Pressure Amid Broader Market Recovery

Shiba Inu’s recent price action has been less than stellar, even as the overall cryptocurrency market enjoys a recovery. Trading at approximately $0.00001564, SHIB’s price has dropped by over 34% from its recent monthly highs. This decline suggests that the token is facing strong resistance, despite the general bullish sentiment across the market.

Shiba Inu price must hold above the current support at $0.000015 to keep up the move towards the next potential upside target at $0.000020. Source: FX1 on TradingView

The subdued price movement can be attributed to a number of factors. For one, the funding rate for SHIB futures contracts indicates neutral sentiment. Unlike other assets that are seeing a surge in demand for long positions, SHIB has failed to attract significant bullish interest. Traders appear cautious, waiting for clearer signals before committing to new positions.

Furthermore, Shiba Inu’s on-chain activity has been lackluster. Although the token’s burn rate surged by an impressive 567%, this hasn’t translated into substantial price action. Interestingly, large transactions involving SHIB have dropped by 61%, highlighting a reduction in whale activity, which has historically been a strong driver of price movements for the token.