The open interest in Shiba Inu (SHIB) futures has fallen 50% from its recent peak, indicating a significant change in market dynamics. Traders are reducing their leverage and closing positions in preparation for future volatility. This decline may be due to price action uncertainty, leading both long and short traders to take a break. Despite the decrease in open interest, SHIB's trading volume has grown, indicating an active spot market. However, there is no clear directional bias as the long/short ratio remains neutral. Recent price declines have pushed bulls out of their positions, leading to liquidations and a potential period of reduced volatility. SHIB is marginally recovering but may struggle to regain bullish momentum if investors continue to withdraw.



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