SHIB Price Analysis

• SHIB’s price is down 25.3% in a month, with Open Interest and whale transactions seeing significant declines.
• Technical indicators suggest a possible short-term bounce, but lack of whale accumulation raises concerns.

Alongside the bearish trend in the broader crypto market, Shiba Inu’s (SHIB) price has been on a consistent decline in recent weeks.

However, the asset saw a slight uptick of 0.3% in the past day, rising to $0.00001226 as of press time.

Despite this recent increase, SHIB remains in a downtrend overall. The memecoin has plunged by 9.4% over the past week and 25.3% over the past month.

Open Interest Decline and Its Impact on SHIB

The steady plunge of SHIB may be attributed to a notable decline in its Open Interest, which refers to the total number of outstanding derivative contracts, such as futures and options, that have not been settled.

A decreasing Open Interest typically signals that traders are closing positions, indicating reduced speculation and weakening momentum. This decline can foster a loss of confidence among market participants, leading to further price drops if new demand does not surface.

Data from Coinglass shows that SHIB’s Open Interest has been trending downward, with a nearly 10% drop in the past day, bringing it to a valuation of $105.94 million. Additionally, SHIB’s Open Interest volume plunged by 12.57% over the same period to $77.41 million.

Shiba Inu and Whale Activity

Despite the declining Open Interest, examining SHIB’s price chart may offer insights into its potential near-term direction. Recently, SHIB’s price dropped to clear out an existing trend line liquidity, which often leads to an expected reversal. This movement into a demand level on the chart indicates a possible rally.

However, this remains speculative, as the bearish trend persists. Data from IntoTheBlock shows that SHIB has not seen significant accumulation from whales, whose transactions have decreased from 698 in January to just 52 currently, an over 80% decline.

This drop in whale activity suggests that large investors are reducing their exposure to SHIB, indicating a lack of confidence in the near-term price action. Given that whales hold substantial amounts of an asset, their activity often influences market sentiment and liquidity. If whale accumulation continues to be low, SHIB may struggle to gain the momentum needed for a sustained recovery.