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Shiba Inu Coin price at risk as funding rate, futures open interest dives

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shiba inu open interest

Shiba Inu Coin price has crashed into a bear market, moving from a high of $0.00004565 in March 2024 to the current $0.0000060, and activity in the futures market points to more downside.

Summary

  • Shiba Inu Coin price has dived, with its market cap falling from $41 billion to $3.7 billion.
  • The futures open interest has continued falling in the past few months.
  • Its weighted funding rate has remained in the red since February 5.

Shiba Inu (SHIB), the biggest meme coin on Ethereum (ETH), was trading at $0.0000060, with its market cap falling from a record high of over $41 billion to $3.7 billion today.

Data compiled by CoinGlass shows that the futures open interest has continued falling this year. It moved to just $61 million, down substantially from last July’s high of over $400 million. 

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shiba inu open interest
SHIB open interest | Source: CoinGlass

Open interest is a crucial metric that measures unfilled orders in the futures market. A higher open interest when a coin is rising is a sign of increasing investor demand. 

The broader open interest in the crypto market has dived in the past few months following the $20 billion liquidation event in October last year. This is one of the top reasons why Bitcoin and most altcoins have dropped.

Meanwhile, Shiba Inu’s weighted funding rate has remained in the red since February 5. A funding rate is a key data that looks at the small fee that longs and shorts in the futures market pay to hold their positions. In most cases, a falling figure indicates that traders anticipate the price will be lower.

Shiba Inu’s burn rate has dropped substantially in the past few days. It fell by over 99% on Thursday to just 483 coins, worth less than $1 were burned in the last 24 hours.

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The biggest risk that SHIB faces is that it has now major catalyst that may push it higher. In addition to the falling burn rate, Shibarium’s activity has dwindled, with its total value locked falling to $856,000.

Shiba Inu Coin price technical analysis

shiba inu coin
SHIB price chart | Source: crypto.news

The three-day chart shows that the SHIB price has dropped sharply in the past few months. It has constantly formed a series of lower lows and is now hovering at its lowest level since 2023.

The coin has tumbled below all moving averages, while the Relative Strength Index has formed a descending channel. It also remains below the Supertrend indicator. 

Therefore, the most likely SHIB price is bearish as demand remains thin. This crash may have it move to the next key support at $0.00000050.

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Crypto World

Crypto Scam Leader Extradited to China to Face Charges

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Crypto Scam Leader Extradited to China to Face Charges

Li Xiong, a key member of a group that allegedly helped crypto scam rings in Asia to move money, has been extradited from Cambodia to China, where he will face fraud and money laundering charges, according to Hong Kong-based news outlet Ta Kung Wen Wei.

On April 1, with strong support from the relevant authorities in Cambodia, a task force sent by China’s Ministry of Public Security successfully escorted Li Xiong, a core key member of the Chen Zhi criminal syndicate, back to China from Phnom Penh, Cambodia,” it said on Wednesday, citing a statement from China’s Ministry of Public Security on WeChat.

Xiong previously served as chairman of Huione Group, an alleged criminal organization that served scam centers in Cambodia that carried out “pig butchering” scams and other investment schemes to steal crypto from victims around the world. 

Huione Group was responsible for one of the largest illicit online marketplaces in the world, handling over $89 billion in cryptoassets.

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Source: Jacob in Cambodia

His extradition comes three months after the arrest of Chen Zhi, the head of Prince Group, which operates Huione Group. In October, it was reported that the US Department of Justice seized 127,271 Bitcoin (BTC) worth more than $15 billion from Zhi.

Related: Hong Kong retiree loses $840K in triple ‘crypto expert’ scam

The US Treasury Department’s Financial Crimes Enforcement Network directed US banks to cut payments and accounts tied to the Huione Group in October.

Authorities ask other Huione members to surrender

Ta Kung Wen Wei noted that several other members of Zhi’s criminal syndicate have been brought to justice “one after another,” citing comments from Chinese public officials.

“Public security authorities will continue to intensify efforts to capture fugitives,” it said, adding:

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“At the same time, they once again warn criminals to recognize the situation, stop before it is too late, surrender as soon as possible, and strive for lenient treatment.”

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