- Shiba Inu Open Interest surged by 8%, sparking hopes of a price move, but technical patterns suggest a bearish reversal is likely.
- Key support around $0.000014 is critical—if broken, SHIB could drop nearly 9% in the near term.
Shiba Inu (SHIB) has recently captured traders’ attention with an 8% surge in Open Interest, sparking speculation about a potential price movement. However, while the increase in speculative activity initially hinted at bullish momentum, deeper technical analysis reveals a more cautious picture.A
Last week, SHIB briefly broke out of a lower timeframe channel, offering a glimpse of optimism among bulls. Yet, this breakout quickly fizzled, turning sentiment neutral as the price failed to maintain upward momentum. Despite the spike in Open Interest—a metric that tracks the number of active futures contracts—the market structure signals that a downturn might be looming.
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The formation of a descending triangle pattern, typically a bearish indicator, has been developing over recent weeks. This pattern, coupled with weakening momentum, suggests that SHIB’s rally could be running out of steam. The memecoin has struggled to break above the resistance at around $0.000017, a level it first hit back in mid-February, and has since retraced toward the $0.000014 support zone.
Supporting this bearish outlook, liquidation heatmaps show a significant cluster of stop-loss triggers just below the $0.000014 mark. This concentration indicates potential selling pressure if the support fails, possibly leading to a price drop of around 3% initially. Should the decline deepen, SHIB might retest the mid-range support near $0.0000129—a nearly 9.3% dip from current levels.
Additional technical indicators like the Chaikin Money Flow (CMF) hovering near zero and the sideways movement of the On-Balance Volume (OBV) reflect indecisive market sentiment, with neither buyers nor sellers firmly in control.
In summary, while the jump in Open Interest could signal increased trader interest, the descending triangle and liquidation clusters point to a probable bearish reversal for Shiba Inu. Investors should keep a close eye on the $0.000014 support level; a breakdown there could trigger a notable price correction.
