Shiba Inu (SHIB), the meme coin that once shook the crypto world with its astronomical gains, is now facing renewed bearish pressure as technical indicators signal potential turbulence ahead. After enjoying a modest rally earlier this month, SHIB has hit a bump in the road—and the latest shift in open interest has sparked concern among traders about the risk of a death cross forming.
SHIB, like many top cryptocurrencies, is feeling the heat of a market-wide correction. The total global crypto market cap has dipped slightly by 1.06%, dragging sentiment down with it. For SHIB, that has translated into a decline below its recent support zone of $0.000015. At the time of writing, the token is trading at approximately $0.00001581—down more than 4% in the past 24 hours, and slipping from its recent high of $0.00001664.
But the price drop isn’t the only worrying sign. One of the more telling developments is the decline in open interest. According to CoinMarketCap, SHIB’s daily trading volume has dropped by over 16% to roughly $439 million. Meanwhile, despite a significant 14.68 trillion SHIB in active futures contracts, open interest has shrunk by more than 3.4%. That’s a red flag for short-term momentum, suggesting that traders are either closing positions or losing confidence in an immediate upside.
Technical Indicators Paint a Murky Picture
The technical outlook adds fuel to the fire. On the 4-hour SHIB/USDT chart, moving averages are showing signs of a possible death cross—a bearish crossover where a shorter-term moving average dips below a longer-term one, often signaling a prolonged downtrend. Specifically, the 9-day and 21-day moving averages are narrowing dangerously close to a bearish crossover.
Despite this looming technical warning, all hope is not lost for SHIB bulls. The Relative Strength Index (RSI) currently hovers in neutral territory, indicating that the asset isn’t yet in oversold conditions. This suggests there could be room for stabilization or even a bounce if broader market sentiment recovers.
Interestingly, IntoTheBlock data reveals that SHIB maintains a 0.87 correlation with Bitcoin over the past 30 days. This strong correlation means that Shiba Inu could mirror Bitcoin’s movements more closely than ever, and if BTC manages to regain momentum, SHIB might follow suit.
Shibarium and Ecosystem Growth Offer Long-Term Hope
Amid short-term technical setbacks, one bright spot remains: Shibarium. This layer-2 scaling solution has quietly made significant progress behind the scenes. With over 11 million transactions now confirmed and daily activity averaging around 4 million, Shibarium is becoming a cornerstone of the SHIB ecosystem.
Furthermore, the protocol’s Total Value Locked (TVL) is approaching the $3 million mark, signaling growing confidence and usage within the ecosystem. For long-term holders and believers in the Shiba Inu project, these metrics offer a compelling counter-narrative to the recent bearish trend.
Conclusion: Short-Term Pain, Long-Term Potential
In the near term, SHIB is undeniably under pressure. The potential for a death cross, combined with falling open interest and volume, suggests caution is warranted for active traders. However, the fundamentals underpinning the Shiba Inu project—particularly the success of Shibarium—continue to show resilience.
As always in crypto, volatility is the norm. But for SHIB, the blend of growing ecosystem strength and macro-market influence from Bitcoin means the memecoin’s story is far from over. Whether this is merely a temporary dip or the start of a deeper correction will depend on how the broader market evolves in the coming days.
