SHIB’s Open Interest Tanks 11%: Is This the End of Shiba Inu?

Shiba Inu (SHIB) has relapsed to levels not seen since October 2023, due to the ongoing crypto market sell-off. The token recently dropped to $0.00000617, continuing a downward trend that has accelerated over the past week.

The broader market has faced significant pressure, with liquidations in the past 24 hours reaching $2.45 billion. Long positions make up the majority of these losses, approximately $2.27 billion, while short positions accounted for $180 million. 

This difference in impact on long traders shows that many were caught off guard by the market’s sudden decline after weeks of relatively stable price action.

Alongside the price drop, Shiba Inu’s open interest in derivatives markets also contracted. According to CoinGlass, SHIB’s open interest fell by 11% to $75.74 million. Futures trading volume experienced a sharp 193% decline within the same period, suggesting that traders are reducing their exposure and adjusting risk at a time of heightened volatility. 

The combination of thin weekend liquidity and declining trading activity has increased downward pressure, contributing to larger price swings.

Price Movement 

Shiba Inu recently fell to $0.00000617, representing its lowest level in nearly three years. Since its January 5th peak of $0.00001008, the asset has steadily retraced, showing that the Relative Strength Index (RSI) is approaching oversold territory near 30. This technical indicator suggests that while the market remains weak, a short-term rebound could be possible.

In the event of a price recovery, potential resistance levels are located at $0.00000785, $0.00001008, and $0.00001047. On the other hand, if selling continues, immediate support is likely to be found around $0.0000055. Analysts note that these levels will be critical in determining the token’s next move.

Sell-offs Follow Similar Patterns

Lucie, a Shiba Inu team member, addressed the current market condition, highlighting the recurring nature of crypto sell-offs and how they often follow similar patterns. Lucie goes further to point out that navigating the crypto space requires a resilient community and consistent focus rather than trying to calculate every move.

Shiba Inu is currently facing challenges from market-wide sell-offs, declining open interest, and reduced liquidity. However, the approaching technical support and potential for a short-term recovery encourage traders to monitor price action closely in the coming sessions for a possible cautious re-entry.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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