Shiba Inu Bulls Make U-Turn on Futures Market, Is SHIB Price at Risk?

Source: CryptoNewsNet Original Title: Shiba Inu Bulls Make U-Turn on Futures Market, Is SHIB Price at Risk? Original Link:

Market Overview

Shiba Inu (SHIB) investors have witnessed the negative turnaround of the futures market. Notably, Shiba Inu open interest entered the red zone today, fueling bearish sentiment for the meme coin’s price.

Shiba Inu Open Interest Flips Bearish

According to market data, the SHIB open interest (OI) flipped negative over the past 24 hours, decreasing by 1.7%.

The drop in this metric signals a decline in futures market activity. Shiba Inu bulls are possibly exiting positions to hedge against the potential risk on the market.

On the crypto market, open interest refers to all the outstanding contracts for digital assets that have not been settled. For SHIB, the 1.7% decline in this important metric shows growing uncertainty as market participants hesitate to bet on future actions.

Due to the declining momentum, investors committed only about 11.6 trillion SHIB tokens on the Shiba Inu futures market over the past day. In fiat terms, the 11.6 trillion SHIB amounted to $102.93 million, based on the current market price.

While the figure is substantial, it is still low performance compared to previous levels. Just a few days ago, the Shiba Inu OI spiked by 1.89% to $12.27 trillion SHIB across different exchange platforms.

Generally, this development is a bullish sign. It implies that more market participants might be motivated to accumulate SHIB, thereby creating future demand.

Should SHIB Investors Be Worried?

In contrast, the sharp decline in Shiba Inu’s open interest suggests that traders are closing short and long positions in preparation for future volatility.

Typically, when OI plunges, the price of the asset usually falls alongside in anticipation of price volatility. However, this is not the current reaction of the Shiba Inu meme coin.

In fact, the memecoin rallied more than 2.3% over the past 24 hours. Currently, SHIB is traded at $0.0000086, with a market cap of $5.06 billion.

Importantly, the latest rally comes shortly after SHIB printed a mini golden cross. This move quickly opened a 22% upside window to $0.00001054 for SHIB after weeks of experiencing downtrends.

Moreso, the SHIB price clearly bounced from a defined local support zone in today’s morning trade. Additionally, SHIB experienced a notable increase in volume as it recovered from its local bottom, bringing it closer to reaching new technical targets.