Shiba Inu: Futures Funds Evaporate by 306%... Did Retail Investors Flee First?

▲ Shiba Inu (SHIB)

In the Shiba Inu (SHIB) futures market, fund flows have cooled rapidly, indicating that traders are reducing their leverage exposure ahead of the next directional move. With futures outflows surpassing inflows, the short-term market has leaned towards risk management rather than aggressive buying.

According to U.Today on May 25 (local time), CoinGlass data showed that Shiba Inu futures flows decreased by 306% over the past 24 hours. Shiba Inu futures inflows were recorded at $3.82 million, while outflows amounted to $4.25 million. The difference between inflows and outflows was a negative $431,100, marking a 306.58% decline.

Futures inflows are an indicator that estimates the active buying and selling volume of cryptocurrency derivatives. Conversely, futures outflows refer to funds exiting derivative exchange wallets, such as margin and futures accounts. If outflows are greater than inflows, it indicates that more capital is leaving the derivatives market, suggesting reduced leverage, profit-taking, or the movement of collateral by traders.

U.Today reported that Shiba Inu recorded a 0.4% decline to $0.00000561 over the past 24 hours. Most major cryptocurrencies also remained flat during the same period. While only a few assets showed upward momentum, the overall market saw a weakening risk appetite for major cryptocurrencies. However, an analysis also suggested that funds are not entirely leaving the market but are being selectively reallocated.

Shiba Inu rebounded after falling to a low of $0.00000549 on Sunday but has not broken out of the sideways range that has persisted since mid-May. The price declined from a high of $0.00000669 on May 11, showing further weakness towards the weekend. If the rebound continues, recovering $0.000006 and $0.0000066, where the 50-day moving average is located, are cited as the next targets. Conversely, if the downtrend continues, support levels at $0.0000052 and then $0.000005 could be tested.

Market sentiment showed some signs of recovery. According to CoinMarketCap, the Crypto Fear & Greed Index rose from 39 (fear zone) to 40 (neutral zone) the previous day. However, in the Shiba Inu futures market, outflow dominance and sideways price movement are occurring simultaneously, indicating continued cautious risk management by traders.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*