Why Is Shiba Inu Struggling?

Declining Open Interest

Over the past week, SHIB has fallen by 9.4%, and it has seen a 25.3% drop in the last month. A key factor behind this price drop is the consistent decline in Open Interest (OI).

Source: TradingView

The OI metric reflects unsettled derivative contracts and a decrease suggests that traders are closing positions, weakening market momentum. Coinglass showed SHIB’s OI dropping by nearly 10% in the past 24 hours to $105.94 million, with OI volume also falling by 12.57% to $77.41 million.

SHIB & Whale Activity

Despite the declining Open Interest, SHIB’s price chart hints at a potential short-term rebound. SHIB recently cleared a trend line liquidity, often signaling a reversal, and has entered a demand zone on the chart.

However, data from IntoTheBlock shows that whale transactions have dropped by over 80% from January to the present, indicating reduced confidence among large investors. This suggests that SHIB may struggle to gain momentum without whale support.