Shiba Inu’s popularity, measured by open interest (OI), has taken a dive. This is causing some concern among investors.
Open Interest Takes a Hit
The number of open trading positions on Shiba Inu has plummeted from a high of $328 million in July to a current level of $190 million. This steady decline suggests traders are becoming less interested in the meme coin.
Why the Drop? A Perfect Storm?
Several factors might be contributing to this drop:
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Crypto Market Correction: The recent downturn in the broader cryptocurrency market has likely played a significant role. Shiba Inu’s price has fallen from its recent high of around $0.000016.
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Trump Tariffs: The threat of increased tariffs on India could further destabilize the market, impacting investor confidence and potentially reducing liquidity in cryptocurrencies like Shiba Inu.
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Weak US Economy: A weaker-than-expected jobs report points to potential economic problems in the US, which could lead to a recession or stagflation, negatively affecting crypto investments.
Is There Still Hope for SHIB?
Despite the downturn, there are some positive signs:
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Bullish Traders: The long/short ratio is currently 1.09, suggesting many traders remain optimistic about Shiba Inu’s future.
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Recent Rebound: Shiba Inu’s price, along with the broader crypto market, saw a small surge recently, boosting trading volume.
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Analyst Predictions: Some analysts are still bullish, predicting significant price increases in the future.
Current Status
At the time of writing, Shiba Inu is trading around $0.00001233, showing a slight increase over the past 24 hours. Whether this is the start of a recovery or just a temporary blip remains to be seen.
