Shiba Inu Open Interest Lags Behind Crypto Market Trends, Impact on Price

Shiba Inu's open interest is trailing behind the broader crypto market, raising questions about its potential impact on the altcoin's price.

Shiba Inu's Open Interest Journey

The crypto market has witnessed a consistent growth in open interest (OI) in recent months. However, Shiba Inu's open interest hasn't mirrored this trend. While major cryptocurrencies experienced substantial OI surges, Shiba Inu's rise has been comparatively subdued, signaling potential implications for its price.

Shiba Inu OI Trajectory

Shiba Inu's open interest surged in August during the onset of the current bull run. Yet, in subsequent months, its OI has lagged behind, diverging from the noticeable spikes seen in other top cryptocurrencies.

According to data from Coinglass, Shiba Inu's open interest peaked at $43 million in August but has struggled to reclaim this level. Currently hovering just below $20 million, this deviation contrasts with the typical pattern observed in altcoins following Bitcoin's trends.

In contrast, Dogecoin, a primary competitor to SHIB, aligned with Bitcoin's trajectory. Dogecoin's open interest remained low in October before experiencing a substantial surge in November, reaching as high as $520 million.

SHIB OI vs. Price Movement

A notable divergence from the broader crypto market is Shiba Inu's price movement, which does not proportionally correlate with its open interest. While Bitcoin and Dogecoin prices surged alongside rising open interest, SHIB's price remained relatively high despite its lower open interest.

This suggests that open interest might not be a primary driver of SHIB's price. Unlike other cryptocurrencies, a decrease in open interest may not necessarily lead to a price crash. However, Shiba Inu closely tracks Bitcoin's recovery, indicating vulnerability to a decline in BTC prices affecting SHIB prices.

It's important to note that Shiba Inu's performance in open interest raises questions about its resilience compared to other cryptocurrencies. The altcoin's departure from the typical relationship between open interest and price movements poses an intriguing aspect for investors to consider.