SHIB Faces Bearish Pressure as Funding Rates Show Volatility

• Despite recent gains, the price of Shiba Inu is still below the resistance point.
• SHIB funding rates show market uncertainty with shifts from negative to positive.
• The price of Shiba Inu varies in combination with the ever-evolving funding rates.

Shiba Inu has struggled to break out of its downtrend, which has been in place since December 2024. Despite the recent uptick, the token remains below resistance levels, continuing its battle against a bearish trend. Crypto analyst Shib Knight highlights the presence of a well-defined descending trendline, showing the pressure that continues to suppress SHIB’s price growth. Although the price has recently pushed upward, it still faces significant resistance levels that it has yet to break through decisively.

Technical Analysis and Resistance Levels

The price of SHIB has tried to break out of resistance several times, yet always failed. Such failed attempts are clearly marked on the chart with downward arrows signifying the difficulty in overcoming selling pressure at such levels. Recent analysis holds a critical level at 0.00001252 USDT, which has shown a dual nature as support-resistance. 

Shib Knight suggests that the formation of a potential bottom at this level may offer a glimmer of hope for traders, but it remains uncertain whether SHIB can maintain its current price above this point for a prolonged period.

Fluctuating Funding Rates Signal Market Uncertainty

The price fluctuations as well as the funding rates for Shiba Inu have been subject to substantial volatility, reflecting a very complex and dynamic market sentiment. Between December 2024 and mid-March 2025, SHIB’s weighted funding rate ranged between positive and negative, presenting further evidence of an ongoing bull vs. bear tussle. 

As of mid-March, SHIB’s funding rate was reported at a clear negative of -0.015%, which suggests a bearish positioning in the market. This decline in funding rate adds more weight to the negative sentiment on SHIB, as it further indicates that short sellers have had an ever-stronger presence in the market lately, presumably adding even more pressure downwards on the price of SHIB.

Related: What Are The Odds For Shiba Inu (SHIB) To Experience A 12X Surge?

The on-chain data reveal that changes in the funding rates explicitly conform to those in SHIB’s prices, thus validating the relation between both factors. The importance of this chart is clear, if SHIB can sustain its gains and confirm this bottom formation, it might provide traders with a chance to enter at a favorable price point. However, as the market has shown in recent months, SHIB’s price has been subject to volatility, so investors should be prepared for fluctuating conditions. 

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