Shiba Inu (SHIB) continued its slide on Wednesday, trading near $0.00000450. The token has now extended its correction for a seventh straight session, with a weak technical structure allowing sellers to retain control of the market.
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AAPLDerivatives activity recovers despite price drop
SHIB has retreated approximately 23% from its August peak of $0.00000583. The price also sits nearly 34% below its June high of $0.00000671, indicating the extent of the ongoing wider correction in the market.
Despite the sustained downtrend, market data shows robust activity in SHIB’s derivatives sector. Perpetual futures open interest now stands at $50.35 million after a slight 2% decline over the past 24 hours. This current level is 81% higher than July’s low point of $27.8 million, signaling a notable rebound in speculative activity.
Increased open interest reflects that traders are allocating more capital to SHIB futures contracts, but the data does not clarify whether these positions are mainly bullish or bearish in nature. When open interest climbs while the token price falls, it can often result in heightened volatility and the risk of significant liquidations among leveraged traders.
On Wednesday, SHIB’s open-interest-weighted funding rate dropped to 0.003%, down from 0.0082% on Tuesday. A positive funding rate means those holding long positions are paying traders on the short side, suggesting higher demand for upward price exposure.
The recent decline in the funding rate hints that retail traders may be cutting back on their long positions. Should demand for long exposure recover—especially if paired with stronger activity in the spot market—it could help absorb ongoing selling pressure.
Although futures market activity is growing, the reduced funding rate and declining spot volume show that market conviction remains cautious. The risk of a long squeeze persists if leveraged bullish traders are forced to exit positions during further declines.
Trading volume has also dropped, falling by nearly 17% from $50.2 million on Tuesday to $41.21 million. Current turnover remains well below the $859.5 million reported on July 27, which marked the highest daily volume since June 2025.
Weak trading volumes reflect limited broader participation. Without a meaningful boost in spot buying, an increase in derivatives activity alone is unlikely to provide sufficient support for a sustainable price recovery. A surge in volume would signal returning buyers and could help SHIB challenge near-term resistance levels.
Technical overview: Downtrend persists
SHIB continues to display a bearish trend, holding around $0.00000450 and trading beneath its descending 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs). This multi-timeframe moving average alignment signals that sellers remain dominant.
If SHIB can reestablish itself above these key EMAs, downward pressure could start to ease. The 4-hour Relative Strength Index (RSI) has now slipped to 40, below the neutral 50 mark but above the oversold threshold of 30. This RSI reading suggests that although momentum is weakening, SHIB still has potential room to decline before reaching oversold territory.
As the RSI moves lower, opportunistic buyers may begin to step in, although an oversold condition does not guarantee an immediate price reversal. Immediate resistance is noted at the 78.6% Fibonacci retracement level of $0.00000462 and at the 50-day EMA of $0.00000465.
A daily close above these key resistance points could help lessen short-term selling interest and allow SHIB to target the 100-day EMA at $0.00000495. On the downside, $0.00000450 represents a major support level and the 100% Fibonacci retracement mark. A clear close below this point could trigger a further fall toward $0.00000405.
Until SHIB decisively reclaims its crucial moving averages with increased trading volumes, any upward move is expected to remain temporary within the broader decline. This technical backdrop emphasizes the importance of monitoring both price patterns and real-time market participation—especially as the boundaries between traditional brokers and emerging Web3 solutions continue to blur. In this evolving landscape, Wall Street is shifting toward tokenized Real-World Assets (RWAs) accessible directly through crypto wallets. Platforms such as 1stepSwap now empower investors to hold shares of leading U.S. companies, gold, and silver, removing intermediaries by securing the best market prices within seconds.
