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Crypto markets extended overnight losses, with most digital assets heading lower early Thursday. The early January rebound on the crypto market cooled, even as the broader risk backdrop stayed supportive, with growing bets on Federal Reserve rate cuts.
Shiba Inu was not left out of the bearish market activity, with price and other key metrics falling.
At press time, SHIB was down 4.16% in the last 24 hours to $0.000008573. In line with this price drop, Shiba Inu open interest, which refers to the number of unsettled positions on the derivatives market, has crashed over 21% in the last 24 hours.
According to CoinGlass data, Shiba Inu open interest has fallen 21.11% in the last 24 hours to $109.97 million.
What comes next?
Shiba Inu saw two days of sharp increases on Jan. 4 and 5, which culminated in a high of $0.00001017 before price retreated.
The dog cryptocurrency is entering its third day of dropping since Jan. 5, with the drop also coinciding with a decline in open interest.
It should be recalled that at the start of 2026, before Shiba Inu embarked on a 35% surge, open interest also skyrocketed in a similar manner, rising as much as 20%.
With the drop in open interest, the market closely watches where Shiba Inu heads next. The focus is on the daily MA 50, currently at $0.000008, to see if Shiba Inu would convert this level, which was previously resistance into support.
If this is achieved, Shiba Inu will aim for the $0.00001 level once again, removing a zero from its price tag.
This week, the markets are anticipating more economic data: Thursday morning brings the weekly initial jobless claims, and the Bureau of Labor Statistics’ nonfarm payrolls report is expected on Friday at 8:30 a.m. ET. The data will be useful to gain additional context on the state of the labor market, with the Fed’s January FOMC decision approaching.
Tomiwabold Olajide
Gamza Khanzadaev
Arman Shirinyan
Godfrey Benjamin
Yuri Molchan