Shiba Inu Coin’s price has fallen for six straight days, even as open interest has rebounded.
Conclusion
- The price of Shiba Inu Coin continued its downtrend on Tuesday, March 3rd.
- The open interest of futures reached more than 63 million dollars.
- However, the weighted rate of financing fell to a minimum in December.
Shiba Inu Token (SHIB) dropped to $0.0000054, continuing a strong downtrend that has been ongoing since November 2024, when it reached $0.00003345. It is now down more than 83%, a move that wiped out billions of dollars.
The Shiba Inu continued to decline this week, even as its futures gains increased. CoinGlass data shows that open interest has risen to $65, its highest level since February 25. The increase was 53 million dollars more than the previous day.
Open interest is a number that looks at the value of open futures contracts in the market. High interest, especially when assets are rising, is usually a bullish sign. On the other hand, a rally during a downtrend is a sign that investors are opening up undervalued bets.
While the open interest rate increased, the leveraged fund rate fell to its lowest level since December last year. Funding decline rate is a number that looks at the small fee that bulls and bears pay to hold their positions. A negative number is an indication that investors expect the price to decrease in the future.
Shiba Inu is facing headwinds as demand for meme coins declines. Most of them, including popular names like Dogecoin, Bonk, and Pepe, have all dropped more than 50% in the past few months.
Macro factors contribute to this, as the ongoing war in Iran increases the possibility of inflation this year. As a result, there is a possibility that the Fed will not cut rates as aggressively as analysts had expected.
Technical analysis of Shiba Inu Coin prices
Shiba Inu Price Chart | Source: crypto.news
The SHIB token has been in decline for the past two years, and buyers of the dip remain unsettled. As a result, it has made a series of lows and highs. The 50-day moving average provided it with dynamic resistance. These indicators point to more downside.
However, there are signs that the sell-off is losing momentum as the Average Directional Index has declined. Also, the coin has formed a large falling pattern.
Therefore, the coin will probably have a rally in the coming days and weeks, and the initial target is the psychological level at $0.0000010.
