SHIB price is struggling to maintain October's gains amid mounting downward pressure at resistance points. This is leading to a sharp decrease in the initiation of new futures contracts as ongoing volatility subsides.
According to recent numbers from Coinglass, there has been a significant decrease in open interest (OI) over the past few days. The OI metric has fallen from a peak of $14.8 million to its current value of $13.1 million, indicating low trading sentiment for the memecoin.
A decrease in open interest coupled with a downtrend in price suggests reduced volatility, which typically deters traders from initiating new positions. This leads to an increasing inclination to sell out and divert attention to other trending projects. Such a trend could potentially lead to a situation where the SHIB price falls through its support levels.