The crypto market has suspended its recent rally, and the prices of leading cryptocurrencies have begun to move sideways. Amid this declining market condition, Shiba Inu (SHIB) has seen its price drop by 3.81% in the last 24 hours.
Amid this unfavorable price movement, SHIB’s key metric has also flashed unexpected bearish signals as its futures activity is seen plummeting significantly.
SHIB open interest falls 17%
According to data provided by CoinGlass, the Shiba Inu open interest has fallen significantly by 16.74% over the last 24 hours, as traders appears to be exiting positions to hedge against potential risk poised by the market downturn.
While SHIB’s open interest refers to all the outstanding contracts for Shiba Inu that have not been settled, the massive decline in this important metric shows growing uncertainty as market participants are hesitating to bet on future actions.
Amid this significant drop, only about 10 trillion SHIB tokens have been committed by investors on the Shiba Inu futures market, a substantially low performance compared to previous levels.
Nonetheless, the sharp decline in the asset’s open interest suggests that traders are quickly reducing their leverage and closing short and long positions in preparation for future volatility.
What's next for SHIB?
This massive drop in the Shiba Inu futures activity has come after the recent crypto market rally that saw Shiba Inu record notable daily gains.
Nonetheless, the rebound did not last for long as the market has suddenly returned to its correction mode, sparking fear and uncertainty among investors.
Following the sudden shift in sentiment, SHIB is back to the downside trajectory, with its price changing hands at $0.000008504 as of writing. Notably, this represents a 3.78% decline in the last 24 hours.
Prior to the sudden decline, the meme coin was trading at a peak of $0.00001032 in earlier trading sessions before its recent drop. Despite the unexpected market shift, analysts have predicted that the ongoing drop will only last for a short term, preparing the token for a big rally in the coming month.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team