Shiba Inu fell approximately 3% on Wednesday, trading around $0.00000870, as market heat in the derivatives sector cools down, testing a technical support level.
This meme coin has seen a pullback from its January 13 high of $0.0000091, and CoinGlass data reports that SHIB futures open interest has declined from around $145 million at the beginning of the month to approximately $140 million.
During the same period, SHIB underperformed Bitcoin by 3.6% and Ethereum by 2.1%.
The price movement follows the volatility expansion seen in early January. At that time, SHIB surged about 30% from its December low, but its upward momentum stalled at resistance levels.
What happened
Shiba Inu is currently trading near the lower Bollinger Band at approximately $0.00000825. The lower Bollinger Band is a technical indicator based on the 20-day simple moving average.
The token price remains below the upper Bollinger Band at around $0.00000971, and the volatility indicator shows that price swings have narrowed since the sharp rise earlier this month.
The open interest indicator suggests a decline in speculative positioning across the SHIB futures market.
According to CoinGlass data, open interest peaked above $145 million in early January and has since declined to approximately $140 million.
This indicator tracks the size of unsettled positions in the derivatives market and generally reflects traders' confidence in directional price movements.
The simultaneous decline in price and open interest suggests weakening confidence among traders using leverage.
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Why is it important
Open interest is used as an indicator of speculative activity and liquidity in the derivatives market.
An increase in open interest generally signals potential for higher future volatility, while a decrease often indicates reduced trader participation.
SHIB's current technical setup indicates that the token has entered a phase of consolidation after the early January rally, with traders closely monitoring whether support levels are holding.
The lower Bollinger Band has previously served as a short-term equilibrium level for SHIB price movements during corrections and range-bound periods.
Whale on-chain activity is showing mixed signals. Some major holders are withdrawing tokens from exchanges, while other whale addresses remain inactive,观望 (watching) without clear movement.
SHIB's 24-hour trading volume is $240 million, increasing by 15% compared to the previous day despite the price decline.
The token's market cap remains above $5 billion, maintaining its position among the top meme coins by market capitalization.
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