Shiba Inu Coin price retreated for six consecutive days even as its futures open interest rebounded.
Summary
- Shiba Inu Coin price continued its downtrend on Tuesday, March 3.
- Futures open interest jumped to over $63 million.
- However, the weighted funding rate plunged to December lows.
Shiba Inu (SHIB) token slumped to $0.0000054, continuing a strong downward trend that has been going on since November 2024 when it peaked at $0.00003345. It has now slumped by over 83%, a move that has erased billions of dollars in value.
Shiba Inu continued dropping this week, even as its futures open interest rose. CoinGlass data shows that the open interest rose to $65, its highest level since February 25. The increase was much higher than the previous day’s $53 million.
Open interest is a number that looks at the value of open futures contracts in the market. A high interest, especially when an asset is riing is usually a bullish sign. On the other hand, an increase during a downtrend is a sign that investors are opening bearish bets.
While the open interest has jumped, the weighted funding rate tumbled to its lowest level since December last year. Falling funding rate is a figure that looks at the small fee that bulls and bears pay to maintain their positions. A negative figure is a sign that investors anticipate the price to continue falling in the future.
Shiba Inu is facing major headwinds as demand for meme coins wanes. Most of them, including popular names like Dogecoin, Bonk, and Pepe, have all slumped by over 50% in the last few months.
Macro factors are contributing, with the ongoing war in Iran raising the possibility that inflation will continue rising this year. As a result, there is a possibility that the Fed will not cut rates as aggressively as analysts expected.
Shiba Inu Coin price technical analysis
Shiba Inu price chart | Source: crypto.news
SHIB token has slumped in the past two years, with dip buyers remaining elusive. Consequently, it has formed a series of lower lows and lower highs. The 50-day moving average has 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 tumbled. Also, the coin has formed a large falling wedge pattern.
Therefore, the coin will likely have a relief rally in the coming days and weeks, with the initial target being the psychological level at $0.0000010.
