Shiba Inu Price Drops 3.65% as Weighted Funding Rate Hits -0.0074%

Shiba Inu (SHIB) has entered a bear market, with its price declining by 20% from its peak this month. On August 19, SHIB dropped 3.65%, reaching a low of $0.00001263, in line with a broader downturn in the cryptocurrency market. The decline is attributed to the formation of a head-and-shoulders pattern on technical charts and a sharp drop in the token's weighted funding rate, raising concerns about further downside [1].

According to CoinGlass data, the weighted funding rate for SHIB has fallen to -0.0074%, the lowest level in months. This metric reflects the cost or rebate structure in perpetual futures trading, helping align futures and spot prices. A negative funding rate indicates that short-sellers are dominating, as they pay longs, a clear signal that traders expect the price to fall [1]. This trend is exacerbated by increased selling pressure, with $1.15 million worth of SHIB moved to exchanges on August 19—the first significant movement in over two weeks [1].

Whale activity has also remained stagnant, with large holders maintaining their positions at 61.7 billion SHIB since August 6 and 45 billion SHIB this month. This lack of movement suggests a cooling interest from institutional and high-net-worth investors [1]. Meanwhile, SHIB’s daily trading volume has dropped to $204 million, significantly lower than that of similar meme coins like Pepe and Floki, signaling weaker demand and reduced market participation [1].

Technical analysis reveals that SHIB has remained below key moving averages, including the 50-day and 200-day EMA, indicating bearish control. The token has also formed a head-and-shoulders pattern, with the right and left shoulders at $0.00015 and a neckline at $0.00001027. A break below the neckline could lead to further price declines. The RSI has fallen below the 50 neutral level, and the MACD is near zero, reinforcing the bearish bias [1].

Analysts are closely monitoring the weighted funding rate, as it has historically indicated downward price pressure when it declines sharply. Without a significant shift in this indicator or the emergence of strong fundamental factors to support SHIB, the market remains cautious. The absence of bullish catalysts has left investors evaluating whether the current decline is a temporary correction or the start of a longer bearish phase [1].

Source:

[1] Red alert: Shiba Inu price to crash as weighted funding rate sinks (https://crypto.news/red-alert-shiba-inu-price-to-crash-as-weighted-funding-rate-sinks/)

[2] SHIB to INR: Shiba Inu Price in Indian Rupee (https://www.coingecko.com/en/coins/shiba-inu/inr)