The Shiba Inu (SHIB) price remains under intense pressure this year as faint demand and weakening market momentum continue to negatively impact the meme coin. In addition to falling prices, novel data shows this Shiba Inu Open Interest (OI) it has failed by over 30% and its burn rate has also dropped significantly. The decline in these key indicators indicates weakening investor interest, lower trading activity and reduced network engagement. Combined with Ongoing Shiba Inu price warthese rising bear signals have raised concerns about whether the Shiba Inu will lose the strength that once made it the second-largest meme coin in the cryptocurrency market.
Shiba Inu Open Interest crashes as prices drop
May 27, data from Coinglass revealed that Shiba Inu open interest fell 6% to $49.4 million, signaling weakness in futures activity and decline in investor confidence in the meme coin. Over the same period, Shiba Inu futures flows dropped by an astonishing 190%, with outflows reaching $5.6 million, far exceeding previous inflows of approximately $4.74 million.
Notably, this pointed drop resulted in a net difference of up to $865,790 in total Shiba Inu contracts closed within 24 hours. The vast outflow also removed approximately 156.56 billion SHIB tokens from the futures market, highlighting the continued decline in speculative activity.
Fast forward to today, Shiba Inu open interest dropped an additional 5.6% to approximately $46.44 million. This suggests that investors continue to exit positions at a rapid pace Bearish sentiment still dominates market. The continued decline in leverage activity also reflects weakening sentiment among short-term investors, with many appearing reluctant to place sturdy bullish bets Short-term recovery of SHIB.
This bearish move occurs when the price of the meme coin experiences prolonged volatility and fluctuations in the market. According to CoinMarketCap data, The number of the Shiba Inu breed is constantly decreasing throughout this month. Its price has fallen by over 14% over the last 30 days, and by over 63% since the beginning of the year.
At the time of writing, the meme coin remains in the red, with the recent price correction due to increased selling pressure Bitcoin price drop. Other factors contributing to SHIB’s low price include broader weakness in the meme coin market, which has also impacted coins such as Dogecoin (DOGE).
The burning rate of SHIB drops to a surprisingly low level
Another indicator that has surprisingly gained popularity is the Shiba Inu’s burn rate. SHIB tokens worth just $2, according to meme burn tracker Shibburn burnt on May 26, highlighting a pointed slowdown in activity and increasing pressure on an already bearish market.
It is worth noting that the Shiba Inu ecosystem is widely known for being bossy burning symbols on a vast scaleand many in the community believe the continued decline in supply could create enough of a shortage to sustain a future price explosion. However, the latest reports on the chain show that this is the case usually an dynamic combustion mechanism he paused.
Shibburn also revealed that only around $11 worth of tokens had been burned in the last 24 hours, representing just over 2.05 million SHIB. Tokens worth less than $100 were withdrawn from circulation last week, indicating waning interest in the meme coin and a clear lack of interest in helping to limit the supply of SHIB.
Featured image from Adobe Stock, chart from Tradingview.com
