Shiba Inu (SHIB) open interest has decreased significantly over the past 24 hours as the price enters a consolidation phase. The recent dynamics show that momentum is fading for SHIB, with major cryptocurrencies facing moderate volatility.
Shiba Inu open interest drops over 3%
According to data from CoinGlass, the Shiba Inu open interest decreased by 3.5% over the past 24 hours. As a result, the meme coin recorded a total futures open interest of 19.18 trillion SHIB.
Although it represents about $299 million based on the current market price, it is still below levels recorded a day prior.
Typically, a decreasing futures open interest suggests traders are closing positions or not entering new ones. This move is usually due to lower confidence, uncertainty or lack of price momentum.
Unsurprisingly, the negative trend in the futures market quickly reflected in the SHIB price. As of press time, the SHIB price hovered around $0.00001414, demonstrating a 5.2% decline over the previous day.
The trading volume also decreased by over 32% to $361 million, indicating investors are reducing interest. However, SHIB is still up 3.5% and 32.9% on the weekly and monthly charts. This means SHIB is consolidating, and a recovery in volume could spark a new rally.
Moreover, the decline in SHIB’s open interest occurs amid broader uncertainty in the global cryptocurrency market. Bitcoin (BTC) and all leading altcoins are facing moderate downturns.
SHIB price predictions
The Shiba Inu team recently assured investors the dog-themed meme coin would break records in the current market cycle. According to them, the meme remains strong and is poised to reach higher levels.
Shiba Inu community member Shibizens predicted that SHIB may rally 800% as it did during the 2021 bull run. This prediction comes amid a significant shift in burn activity.
The Shiba Inu burn mechanism is a key deflationary strategy designed to reduce the circulating supply of SHIB. The aim is to drive up demand as supply decreases, ultimately increasing the value of SHIB.
