Shiba Inu (SHIB) has seen a sharp decline of 25.3% over the past month, with decreasing Open Interest and reduced whale activity contributing to growing uncertainty about its recovery. While traders speculate about a potential price reversal, the latest data suggests that SHIB’s momentum remains weak.
Falling Open Interest and Its Impact on SHIB
SHIB’s consistent price drop coincides with a steady decline in Open Interest. This crucial metric tracks the number of outstanding derivative contracts that remain unsettled, such as futures and options. When Open Interest decreases, it typically indicates that traders are closing their positions, reducing speculation and weakening market momentum.
According to Coinglass, SHIB’s Open Interest fell nearly 10% in the past day, reaching $105.94 million at press time. Additionally, Open Interest volume plummeted 12.57% over the same period, dropping to $77.41 million. These declines suggest market participants are losing confidence in SHIB’s short-term potential, making it harder for the token to regain strength unless fresh demand enters the market.
Whale Activity Signals Weak Market Sentiment
Beyond Open Interest, whale activity offers further insight into SHIB’s trajectory. Large investors have significantly reduced their transactions, showing a clear lack of interest in accumulating the token.
IntoTheBlock data reveals that whale transactions in SHIB have dropped from 698 in January to just 52 at press time—an alarming 80% decrease in recent months. Since whales hold substantial portions of an asset, their reduced activity often signals weak market sentiment. If whales continue avoiding SHIB, the token could struggle to generate the momentum needed for a strong rebound.
Could SHIB See a Reversal?
Despite these bearish signals, SHIB’s price chart hints at a potential turnaround. The token recently dipped below a key trendline, clearing out liquidity—a move that often precedes a reversal. Additionally, SHIB has entered a demand zone on the chart, suggesting a rally could be on the horizon.
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However, this outlook remains speculative. SHIB may find it difficult to sustain an upward trend without increased whale accumulation and stronger market participation. While the possibility of a bounce exists, traders should approach cautiously as bearish pressure still looms.
For SHIB to regain strength, it needs renewed interest from large investors and an uptick in Open Interest. Until then, the token remains at risk of further decline, with its recovery path still uncertain.
