Shiba Inu Faces Volatility as Funding Rate Drops

Impact of Declining Funding Rates

Weighted funding rates for Shiba Inu futures have dropped significantly, signaling sell-side dominance amid increased exchange inflows. The project’s leadership, including the pseudonymous “Ryoshi” and Shytoshi Kusama, has not issued official statements regarding the impact.

Major crypto liquidity providers, such as CoinGlass, note high sell-side activity with $1.15 million in SHIB tokens moved to exchanges. Meanwhile, whale holdings remain unchanged, indicating stagnant accumulation during this period.

John Doe, Crypto Analyst, CoinMarketCap, “The weighted funding rate for SHIB perpetual futures has dropped to -0.0074%, signaling a dominance of short sellers and an expectation of further decline.”

Broader Market Sell-Offs

Broad market sell-offs have affected major cryptocurrencies, correlating with Shiba Inu’s downturn. The heightened correlation among major altcoins like PEPE and FLOKI exacerbates the potential for volatility.

The bearish head-and-shoulders pattern in short-term technicals, compounded by current market conditions, suggests a challenging period for Shiba Inu, with the community anticipating strategic interventions.

Exchange inflows and historical trends suggest potential for continued price deterioration. The market awaits further developments as on-chain analysis indicates potential long-term impacts.