The landscape for Shiba Inu (SHIB) investors has shifted dramatically as the futures market displays signs of weakness. Recent data from CoinGlass indicates that SHIB”s open interest has entered a downturn, decreasing by 1.7% within the last 24 hours. This decline suggests a waning interest in futures contracts, hinting that traders might be opting to close their positions to mitigate potential risks in the market.
Open interest in cryptocurrency refers to the total number of outstanding contracts that have yet to be settled. For Shiba Inu, the 1.7% drop in this critical metric reflects a growing uncertainty among market participants, who appear hesitant to place bets on future price movements. Over the past day, only 11.6 trillion SHIB tokens were traded in the futures market, equating to approximately $102.93 million at current prices. While this figure remains significant, it pales in comparison to previous trading volumes.
A few days ago, Shiba Inu”s open interest had spiked by 1.89%, reaching 12.27 trillion SHIB across various exchanges, a development typically interpreted as bullish. This spike indicated increased participation and potential accumulation of SHIB, which could create future demand. In stark contrast, the recent decline in open interest signals that traders are preemptively closing both short and long positions in anticipation of market volatility.
Interestingly, despite the negative sentiment surrounding open interest, the price of Shiba Inu has experienced a rally of more than 2.3% over the last 24 hours. Currently, SHIB is trading at $0.0000086, with a market capitalization of $5.06 billion. This price increase follows a recent mini golden cross formation, which opened a potential upside of 22% to $0.00001054 after a prolonged downtrend.
Moreover, SHIB”s recent price action has demonstrated a bounce from a well-defined local support level, marking a recovery from its local bottom. With a notable increase in trading volume accompanying this price rebound, there is cautious optimism about SHIB”s trajectory moving forward.
