Shiba Inu (SHIB) Struggles to Gain Momentum Despite Bullish Market Trends

Shiba Inu (SHIB) Struggles to Gain Momentum Despite Bullish Market Trends

While the broader cryptocurrency market experiences a strong bullish trend, Shiba Inu (SHIB) has struggled to maintain upward momentum. Unlike major cryptocurrencies that have registered significant gains, SHIB’s price remains sluggish, leaving investors questioning the reasons behind its underperformance and what lies ahead in the coming weeks.

SHIB Faces Selling Pressure Despite Market Recovery

Shiba Inu price continues to face downward pressure, reflecting uncertainty in the meme coin sector. As of today, SHIB is trading at $0.00001564, marking a 3.44% decline over the past 24 hours. The token remains 34% below its recent monthly high and 17% down from its weekly peak, signaling weak bullish momentum.

A key factor contributing to this lackluster performance is the neutral funding rate for SHIB futures contracts. Unlike assets experiencing strong bullish demand, SHIB has not seen a significant increase in long positions, suggesting that traders remain hesitant, awaiting clearer signals before entering new positions.

On-chain data also presents a mixed picture. SHIB’s burn rate has surged by 567%, a bullish indicator, yet this has not resulted in notable price appreciation. Moreover, large SHIB transactions have declined by 61%, indicating reduced whale activity, which could be contributing to the token’s stagnation.

Controversy Surrounding SHIB’s Lead Developer

Adding to the uncertainty, Shiba Inu has been embroiled in controversy following allegations against its lead developer, Shytoshi Kusama. The well-known SHIB burn tracker, @shibburn, recently accused Kusama of misleading investors and endorsing projects outside the SHIB ecosystem.

One of the most contentious claims is Kusama’s alleged involvement with SHY, a newly launched cryptocurrency on the Solana blockchain. Although the Shiba Inu team has denied any official links, Kusama’s public interactions with SHY—including burning half of its supply—have fueled speculation.

@shibburn has also criticized projects like K9 Finance, claiming they falsely present themselves as official Shiba Inu initiatives.

“These two are not leaders of SHIB. They have no authority to assign any project as ‘official,’ including their own projects,”

The allegations have led to increased scrutiny of Shiba Inu’s leadership, causing some investors to adopt a more cautious stance—a potential factor behind SHIB’s recent price decline. Kusama has yet to respond directly, leaving the community divided on the issue.

Shiba Inu’s UAE Partnership and Growth Prospects

Despite the ongoing controversy, Shiba Inu continues to expand its ecosystem with notable partnerships. One of its most significant recent developments is a collaboration with the United Arab Emirates (UAE) Ministry of Energy and Infrastructure (MoEI) to integrate Web3 solutions into government services.

This partnership will involve the implementation of ShibOS, Shiba Inu’s blockchain-based operating system, across key sectors like energy and infrastructure. Sharif Al Olama, Undersecretary for Energy and Petroleum Affairs at MoEI, emphasized the project’s transformative potential, stating:

“This collaboration will help deliver transformative solutions that benefit both our citizens and the wider community.”

This marks the first time a national government has adopted blockchain technology at the federal level, highlighting Shiba Inu’s growing credibility. However, while the announcement initially drove SHIB’s price higher, the rally was short-lived, suggesting that investors are waiting for more concrete developments before making further commitments.

What’s Next for SHIB in February?

Shiba Inu’s price trajectory in the coming weeks will depend on several key factors. The adoption of Shibarium, SHIB’s layer-2 scaling solution, could play a crucial role in driving growth. Additionally, further progress on ShibOS and the UAE partnership could attract more investors, helping push SHIB towards the coveted $0.01 target.

However, given the high volatility of the meme coin market, SHIB’s ability to break out of its current range will be influenced by overall sentiment. If buying pressure increases, analysts suggest SHIB could test resistance at $0.000018 and possibly erase a zero. Conversely, if selling pressure persists, SHIB could retest support at $0.000012.

With ongoing controversy, whale activity, and macro market trends shaping SHIB’s future, investors remain cautiously optimistic about the token’s long-term potential.