Shiba Inu (SHIB) Braces for 40% Price Drop, Another Zero Looms

Shiba Inu (SHIB) Faces Potential 40% Price Drop, Adding Another Zero

The cryptocurrency market has been volatile in recent days, with several major coins experiencing significant price drops. Among them, Shiba Inu (SHIB) has caught the attention of investors and analysts alike, as it faces the possibility of a 40% price drop that could result in another zero being added to its value.

Analysts have attributed this potential decline to a variety of factors, including increased selling pressure from whales, a bearish sentiment among retail traders, and negative metrics in derivative markets. Whales, or large investors controlling between 100 million to over 1 billion DOGE, have sold 270 million DOGE in the past 24 hours, forcing a price decline and market losses.

Derivative traders’ positions in the market have turned bearish as two key metrics—Funding Rate and Open Interest—have shifted negatively. The Funding Rate, which shows whether buyers or sellers are in control based on which group pays the premium to maintain price balance in the spot and Futures market, indicates that sellers are in control. This is confirmed by a negative Funding Rate. At press time, DOGE’s Funding Rate stood at negative 0.0245%, meaning perpetual contracts were dominated by sellers.

The Open Interest (OI), which measures the amount of unsettled derivative contracts in the market, shares a similar sentiment. At the time of writing, OI has declined by 30.08% to $2.53 billion, suggesting that derivative traders are closing their positions, and liquidity outflow is occurring, adding more downward pressure.

Bullish traders have incurred major market losses in the past 24 hours, given the current bearish trend. At the same time, the liquidation data opposed a market rally, as traders remained bearish across all timeframes. In the past hour alone, $2.31 million worth of long liquidation positions have been closed, compared to $99,880 of short positions. This large disparity between long and short contracts in lower timeframes highlighted the depth of the bearish trend.

Overall, this bearish trend persists, with exactly $69.46 million worth of long positions on DOGE closed, while short positions account for just $18.9