The Shibainu (SHIB) derivatives market has seen reduced activity over the past few weeks. This was reflected in a decline in futures open interest, which fell to its lowest level since February 14.
This drop was due to a drop in memecoin prices. At the time of writing, SHIB is trading at $0.000014, with the last price level reached on March 1.
Decrease in Futures Open Interest
According to Coinglass, SHIB’s futures open interest is $26 million. It has continued to fall since July 19, dropping 51% in the past 16 days. This decline indicates a decrease in market activity and interest in the underlying asset, often seen as a bearish signal.
However, despite the decline in futures open interest, SHIB dominates funding rates on cryptocurrency exchanges, suggesting a different narrative for memecoins.
Potential Price Rebound
The Relative Strength Index (RSI) for SHIB on the 1-day chart is currently at 29.03, indicating oversold conditions and a possible price rebound in the near future.
However, other indicators such as the Chaikin Fund Flow (CMF) show a bearish trend, with SHIB’s CMF at -0.15, below zero, indicating a downward trajectory.
Should the bearish trend continue, SHIB’s price may drop to $0.000012, with selling pressure outweighing buying pressure in the market.
Looking Ahead
Despite the current market trends, there is still optimism for SHIB, with a possible price increase to $0.000020 if liquidity continues to flow into the token.
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