The broader cryptocurrency market has recently paused its upward momentum, settling into a period of sideways movement. Amid this market stagnation, the popular meme coin Shiba Inu (SHIB) has experienced a notable downturn, exhibiting concerning signals from its crucial futures market metrics.
Shiba Inu's Price Retreat
Following a brief but promising rally, Shiba Inu's price has shifted back into a correctional phase. In the last 24 hours, SHIB recorded a decline of nearly 3.8%, with its value settling around $0.000008504. This recent drop signals a return to a downside trajectory for the asset, stirring uncertainty among its investor base after a period of positive gains.
Plummeting Futures Activity Signals Bearish Outlook
Perhaps the most significant indicator of SHIB's current predicament is the substantial decline in its futures open interest. Data reveals a sharp 16.74% reduction in SHIB's outstanding futures contracts over the past day. This metric, which represents the total number of unsettled contracts, saw only approximately 10 trillion SHIB tokens committed by investors – a markedly low performance compared to previous levels. The dramatic fall in open interest suggests that traders are actively de-risking, closing both long and short positions, and reducing leverage in anticipation of increased market volatility. This widespread exit from future positions underscores a growing hesitancy among market participants to bet on SHIB's immediate future, flashing a strong bearish signal for the popular meme coin.
