SHIB Faces Bearish Pressure as Shibarium Governance Controversy Deepens

SHIB is currently facing heightened bearish pressure amid growing tensions within the Shibarium ecosystem. The price of Shiba Inu (SHIB) has been in a sustained decline since reaching a high of $0.00001600 in mid-July, hovering just above critical support at $0.00001200 on the daily chart [1]. On the 4-hour chart, it trades at $0.00001228, having found short-term support at $0.00001150 and attempting a modest recovery [1]. While the Relative Strength Index (RSI) has recovered to 45.99 from an oversold level of 37.86, suggesting fading bearish momentum, it still faces immediate resistance near $0.00001250 [1]. Without strong buying pressure, any short-term rebound could be limited by this level.

The bearish sentiment is not purely technical. A growing controversy within the Shibarium community has further added to the uncertainty. WoofSwap, a major decentralized exchange, accused key figures within the ecosystem—Kusama and Kaal Dhairya—of showing favoritism toward certain projects. This criticism stems from their endorsement and promotion of Positions Exchange during its initial DEX offering (IDO). WoofSwap argued that this behavior undermines the principle of equal opportunity and damages trust among developers [1]. It emphasized that all developers should start on equal footing, and selective promotion of specific projects risks creating an uneven playing field.

Kaal Dhairya has acknowledged the criticism, admitting that biases exist within the ecosystem. He attributed the slow progress to "lack of unity and personal agendas" and called for a shift to DAO-led governance and transparent procedures to ensure fairness and equal visibility for all projects [1]. His remarks highlight the ongoing internal struggles within the Shibarium ecosystem and the need for structural reforms to regain community trust.

From a market perspective, SHIB’s technical indicators paint a mixed picture. The RSI on the daily chart stands at 40.87, nearing oversold territory, but the signal line remains higher at 48.19, reflecting continued bearish pressure [1]. Analysts suggest that a bullish crossover in the RSI could signal the start of a short-term rebound, but the overall trend remains downward. If the key support level of $0.00001200 breaks, the price could face further losses, potentially extending toward $0.00001150.

The current situation illustrates how internal governance issues can exacerbate market dynamics. While SHIB’s price action may find temporary respite in overbought RSI levels, the broader bearish trend remains intact unless there is a coordinated effort to address governance concerns and restore confidence in the ecosystem.

Source: [1] SHIB Price Analysis: WoofSwap Criticism Adds to Bearish Pressure (https://coinmarketcap.com/community/articles/68909883c655ae7a1f830ed4/)