 ▲ Shiba Inu (SHIB) / AI-generated image |
Shiba Inu (SHIB) is facing mounting downward pressure as investor sentiment weakens alongside a sharp decline in open interest in the futures market.
According to crypto-focused media outlet U.Today on March 1 (local time), open interest in the Shiba Inu futures market plunged by approximately 8%, signaling a rapid deterioration in investor sentiment. A decline in open interest indicates that traders are closing existing positions and exiting the market, which is generally interpreted as a precursor to increased price volatility.
Data from Shibburn, one of the key metrics within the Shiba Inu ecosystem, shows that the token burn rate also dropped დაახლოებით 98% over the past 24 hours, suggesting that the supply-control mechanism aimed at supporting prices has lost momentum. Weak burn activity, coupled with stagnant on-chain activity, is undermining the typical upward momentum associated with meme coins. Technically, analysts note that Shiba Inu remains trapped in a descending triangle pattern after failing to break above its 26-day exponential moving average.
Market participants say Bitcoin’s (BTC) price trajectory and broader macroeconomic uncertainty are accelerating liquidity outflows from altcoins such as Shiba Inu. The large-scale transfer of assets to exchanges by major whale investors has further heightened potential selling pressure, reinforcing bearish expectations. Current wallet flow data for Shiba Inu shows a clear preference for distribution rather than accumulation.
The Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) suggest that SHIB has entered oversold territory, but analysts warn that any technical rebound without accompanying trading volume could prove temporary. If the key support level at $0.000007 breaks down, losses could deepen further. Conversely, bearish control is expected to persist until a decisive breakout above the upper boundary of the descending channel occurs.
Rather than relying on short-term speculative demand, Shiba Inu’s price recovery will likely hinge on the restoration of tangible network utility and the burn mechanism. With institutional capital flows into altcoins remaining limited, SHIB’s price resilience may serve as a barometer for overall sentiment in the meme coin market. Investors are maintaining a cautious stance, bracing for the possibility of further price corrections.
Disclaimer: This article is for investment reference purposes only and does not take responsibility for any investment losses incurred based on its content. The information provided should be interpreted for informational purposes only.