Open interest in Shiba Inu (SHIB) futures hit its lowest level since February 14 this year. Meanwhile, the price of SHIB has fallen to $0.000014. We use on-chain metrics and technical indicators to determine whether there is any hope for recovery.
Traders Stay Away from Shiba Inu
According to Coinglass, open interest in SHIB futures is $26 million. It has been steadily declining since July 19, falling 51% over the past 16 days.
Futures open interest reflects the total number of futures contracts outstanding. A decrease in open interest indicates a decrease in market activity and interest in the underlying asset. This is generally considered a bearish signal, indicating a decrease in traders’ confidence in the asset’s future.
Interestingly, the SHIB financing rate remains positive. The funding rate, or funding, is a mechanism used in perpetual futures contracts to keep the contract price close to the spot price. Positive funding means that the number of long positions outweighs the number of short positions.
SHIB Price Forecast: Should We Expect a Recovery?
The SHIB Relative Strength Index (RSI) suggests a possible price recovery. At the time of publication, the indicator value is 29.03, indicating that the asset is heavily oversold.
However, other indicators indicate that there is no hope for growth yet. The decline in the SHIB price is accompanied by a drop in the Chaikin Money Flow Index (CMF). At the time of publication, the CMF value is below zero, at -0.15, and continues to decline.
The price correction against the background of negative CMF indicates a strong bearish trend. If the market sentiment remains negative, Shiba Inu may fall to $0.000012. However, rising inflows into SHIB could trigger a rally towards $0.000020.
