After showing an explosive price move, posting one of its strongest daily performances in months, Shiba Inu has suddenly cooled off.
While the dramatic $SHIB move in and out of the bullish zone has attracted all eyes on the crypto asset, important metrics across its spot and derivatives market have caught the attention of the crypto community.
Shiba Inu OI drops 25%
Latest data from Coinglass shows that Shiba Inu has registered a substantial decline in its futures activity, after its open interest fell by a massive 25% within the last 24 hours.
Prior to this massive open interest drop, Shiba Inu had regained momentum following a parabolic price move that saw it trade around $0.0000057.
However, it appears that sentiment has suddenly flipped as traders are actively reducing their exposure in the futures market, bringing its open interest volume back to 10.13 trillion $SHIB.
With this rapid slowdown in the $SHIB futures market, Shiba Inu has experienced a dramatic shift in its price action, dropping by over 7% with its price now trading around $0.0000050 as of July 27.
What's behind $SHIB's price flip?
The sudden decline across the $SHIB spot and derivatives market comes off as surprising as it arrived just a day after $SHIB surged more than 35%.
The rally saw its price reclaim levels not seen in the last two months, briefly reigniting bullish sentiment across the crypto ecosystem.
The rapid price surge also saw $SHIB outperform other crypto assets, ranking it back to the 25th spot among the largest cryptocurrencies by market capitalization.
While the sudden price reversal has triggered concerns among investors, the bearish futures trend suggests that many traders either closed positions to lock in profits following the rally or were forced out as the market reversed.