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Shiba Inu remains trapped below a critical resistance level, as weak buying pressure and cautious whale behavior continue to cap upside momentum.
While on-chain data shows improving fundamentals, including falling exchange reserves and steady accumulation, Shiba Inu’s price has remained below $0.0000066 over the past few days, preventing a meaningful breakout.
Key Points
- Shiba Inu remains capped below $0.0000066, as cautious whale activity continues to limit upside momentum.
- The asset’s rebound above $0.000007 in mid-February was short-lived, and the price fell to $0.0000062.
- Whale activity has slowed, with large holders choosing to store tokens in cold wallets rather than actively trading.
- Analysts warn that continued weakness could push $SHIB toward $0.0000055, with a potential retest of the $0.0000050 monthly low.
Shiba Inu Remains Stuck Below Key Resistance
On February 15, $SHIB staged a strong rally, breaking above $0.000007 and briefly peaking at $0.0000072. At the time, many investors anticipated further upside and a potential move to erase one zero.
However, the rally quickly faded, and a sharp correction pushed the token back below $0.0000066, turning former support into firm resistance. Since then, $SHIB has repeatedly failed to reclaim this level, as sellers consistently step in to halt upward attempts, sustaining bearish pressure.
At the time of writing, $SHIB trades at $0.00000625, consolidating within a tight range that reflects market indecision.
Falling Exchange Reserve and Whale Accumulation Fail to Drive Upsurge
Meanwhile, on-chain metrics remain constructive. Over recent weeks, exchange reserves have dropped significantly, declining from about 82 trillion to 81.47 trillion tokens, signaling that holders are moving assets off centralized platforms.
Typically, this trend reduces short-term selling risk. However, lower exchange supply alone has not been enough to lift prices. Instead, $SHIB still requires strong demand, particularly from whales.
While large holders showed moderate activity last month, including a notable 15 billion $SHIB withdrawal from WazirX, they now appear to be holding rather than actively trading. Consequently, this strategy reduces the likelihood of sudden sell-offs but also limits fresh buying pressure, keeping price action subdued below resistance.
Traders Remain Cautious Amid Declining Trading Volume
Technical indicators further reinforce the cautious outlook. The Relative Strength Index (RSI) remains neutral, while MACD momentum continues to fade, highlighting the lack of strong directional conviction.
In addition, trading volume has steadily declined, falling 4.74% over the past day to $103 million, underscoring weak market participation. Without a sharp increase in buying activity, analysts warn that $SHIB could drift toward lower support at $0.0000055 or even retest the $0.0000050 monthly low.
Conversely, a decisive breakout above $0.0000065, supported by rising volume, could quickly shift sentiment and reignite bullish momentum. Beyond technical factors, ecosystem developments and broader market conditions could influence $SHIB’s next move.
However, recent updates, including the launch of the Shib Owes You (SOU) NFT to compensate Shibarium victims and speculation surrounding a potential $SHIB-linked ETF from T. Rowe Price, have failed to spark price appreciation, adding further pressure to the token. Until stronger catalysts or broader market momentum emerge, $SHIB is likely to remain range-bound.