Shiba Inu Selloff Continues as Retail Demand Surges

Shiba Inu (SHIB) has been experiencing a sell-off for seven consecutive days, currently trading at $0.00000450. This bearish outlook is attributed to a weak technical structure.

The meme coin's derivatives have gained momentum, with perpetual futures Open Interest rising to 11.08 trillion SHIB on Tuesday from 10.46 trillion the day before. Retail demand for SHIB derivatives has nearly doubled since July, reaching 6.05 trillion SHIB.

This surge in retail interest suggests that investors are increasing their risk exposure, as reflected by the OI-Weighted Funding Rate holding at 0.0082% in the positive region on Tuesday. However, trading volume remains low at $50.2 million despite a marginal increase from $31.7 million the previous day.

The technical analysis shows that Shiba Inu holds below key descending moving averages and has a declining Relative Strength Index (RSI) at 45 on the daily chart. This suggests that momentum is weak, and the RSI may drop further before prompting a recovery if the next major support at $0.00000405 holds.