- SHIB price remains trapped under strong downtrend resistance since August.
- Holder numbers keep rising, showing growing long-term confidence in Shiba Inu.
- Weak inflows and limited outflows leave short-term price action under pressure.
Shiba Inu is facing a tough test. While the number of holders keeps climbing, the price of SHIB is struggling to stay above key support levels. The token sits near $0.00000990, caught between growing community interest and fading short-term momentum. On-chain strength hints at long-term promise, yet technical signals flash caution. The big question is whether rising holder confidence can eventually spark a recovery or if more downside lies ahead.
Price Action Faces Downtrend Pressure
Shiba Inu has been slipping since August. Each rally attempt gets capped by a descending resistance line that limits upside momentum. The token recently rebounded from $0.00000900, but gains stalled near $0.00001076, where the 20-day EMA currently sits. The daily chart shows a cluster of resistance levels between the 20-day and 50-day EMAs. Above that, the 100-day and 200-day EMAs form a tougher ceiling, reinforcing the broader bearish setup. Until price action breaks above those moving averages, traders remain cautious.
Volatility has tightened around the current range, leaving many investors focused on whether the $0.00000900 support can hold. A clean break below could open the door for deeper declines before any recovery attempt begins. For now, the market sentiment is cautious, with traders preferring to wait for a confirmed breakout rather than risk early entries. Despite the short-term pressure, there are signs of quiet optimism beneath the surface. On-chain data shows continued expansion in holder numbers, which might offer support when the market turns risk-on again.
Holder Growth Builds Long-Term Foundation
Recent on-chain data paints a more optimistic long-term picture. As of October 21, Shiba Inu holder addresses reached 1,546,558, marking steady growth week after week. This increase shows that retail investors continue to believe in the project, even as price movement remains under pressure.A growing base of long-term holders often helps stabilize markets during weak phases. It reduces volatility and builds a stronger foundation for future rallies.
This trend highlights steady confidence among smaller investors who appear willing to ride out the current consolidation.However, on-chain data also shows limited short-term inflows. According to Coinglass, SHIB recorded a net outflow of around $901,000 on October 22. While outflows can reduce selling pressure, this figure is modest compared to previous accumulation periods.
Without stronger inflows or a sharp rise in withdrawals, momentum may stay muted for now. The lack of aggressive buying suggests traders remain hesitant until a clearer signal emerges. A breakout above the downtrend channel could be that signal, potentially attracting new capital into the market. Until then, SHIB’s price may stay range-bound or even slip lower if sellers regain control.
