Shiba Inu trades in tight range at $0.000004378, futures volume rises while major wallets increase caution

Resistance pressure persists as price tightens

At the time of reporting, SHIB was changing hands at $0.000004378. The token posted a 1.12% gain in the past 24 hours, with trading volume rising 4.01% to $73.06 million. Over the week, SHIB climbed by 3.32%.

Market analysts, including Crypto With Gopal, underscored a rectangular compression pattern on SHIB’s chart and cautioned that a potential double top formation could be forming. While buyers remained active within the current range, sellers repeatedly halted upward moves near the upper band.

As Crypto With Gopal observed, as long as SHIB maintains its rectangular structure, a breakout above could ease double top pressure and set the stage for a new wave of gains.

This makes the range’s lower support band critical in the short term. To secure a permanent move higher, SHIB will need stronger volume. Otherwise, price consolidation within the current range is likely to persist.

Futures market activity accelerates

According to CoinGlass data, SHIB’s futures trading volume surged by 15.72% to $99.53 million. Open interest rose 2.10% to reach $34.98 million. This points to more active positions in the market, although extreme leverage is not a dominant feature at present.

The open interest-weighted funding rate stood at 0.0029%. This indicates sustained interest in SHIB’s futures markets, but not to an overheated degree.

On-chain distribution maintains cautious tone

On-chain address data painted a more complex picture. Bubblemaps, an analytics platform that visualizes relationships between wallet clusters and token flows on the blockchain, was referenced for deeper insight.

Quick glossary: Bubblemaps is an on-chain analytics tool that visually maps wallet connections and token concentrations as a network. Clusters of coordinated addresses help track risks related to concentration and synchronized trading behavior.

While overall distribution suggested neutral to slightly positive dynamics, risks related to wallet centralization were pronounced. Notably, the largest “burn addresses” held 41.04% of these tokens. Since tokens in burn wallets are permanently removed from circulation, this could support supply-side dynamics, provided demand holds steady.

Conversely, a single cluster of 252 interconnected addresses controlled 8.58% of total SHIB supply, a concentration that raises concerns about potential selling pressure. Should this group decide to sell, it could exert significant downward pressure on prices.

Clusters of linked addresses may signal coordinated moves by large investors. As a result, whether support levels hold in the short term remains under close scrutiny.

Amid these developments, Shiba Inu remains trapped between support and resistance levels. Bulls will need to break through resistance decisively to regain control, while a loss of key support could see prices retreat further.