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Shiba Inu (SHIB) Hits Three-Month Low as Open Interest Drops by 50% in a Week

2 mins
Updated by Lynn Wang
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In Brief

  • Shiba Inu’s price is presently at a three-month low after breaking below the consolidation.
  • As evinced by the Chaikin Money Flow’s decline, the selling pressure continues to rise.
  • The Open Interest has declined by more than 50% from $73 million to $34 million in a week.
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Shiba Inu’s (SHIB) price action is leading the meme coins in terms of the worst performance this month.

Recovery for SHIB holders could take some time, as current market conditions do not support a bullish outcome.

Shiba Inu Investors Step Back

Shiba Inu’s price is facing the brunt of the bears as the meme coin slipped to a three-month low. With the decline, selling pressure on Shiba Inu investors continues to rise, as visible in the downtick in the Chaikin Money Flow.

This indicator, which measures the accumulation and distribution of a cryptocurrency, is currently below the neutral line. This highlights increasing bearish sentiment among investors.

Read More: How To Buy Shiba Inu (SHIB) and Everything You Need To Know

Shiba Inu CMF.
Shiba Inu CMF. Source: TradingView

In addition to the Chaikin Money Flow, Shiba Inu’s Open Interest has significantly declined. Open Interest represents the total number of outstanding derivative contracts and is a key metric for gauging market sentiment and potential future price movements.

Over the past week, Shiba Inu’s Open Interest has dropped by more than 50%, from $73 million to $34 million. This substantial decrease shows a notable shift in investor behavior and confidence.

Shiba Inu Open Interest.
Shiba Inu Open Interest. Source: Coinglass

The sharp decline in Open Interest suggests that investors are withdrawing their money from Shiba Inu, largely due to the ongoing price decline. This withdrawal further reinforces the growing selling pressure and bearish outlook for the cryptocurrency.

SHIB Price Prediction: Recovery Will Take Some Time

Shiba Inu’s price, trading at $0.00001799, is already below the critical support of $0.00002093. As investors withdraw their investments, the meme coin could now suffer the consequences of the decline.

The meme coin will likely either hover under $0.00002093 or face a drawdown to $0.00001473. In either case, consolidation will likely be the next step for Shiba Inu’s price, with recovery postponed.

Read More: Shiba Inu (SHIB) Price Prediction 2024/2025/2030

Shiba Inu Price Analysis.
Shiba Inu Price Analysis. Source: TradingView

This bearish thesis is only invalidated if the buying pressure makes a comeback. This would drive the price upwards again, potentially sending it above $0.00002093. A further push would flip $0.00002267 into support.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Aaryamann Shrivastava
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
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