Shiba Inu price breakdown below $0.00001 triggers massive withdrawals from trading platforms. SHIB’s futures recorded a sharp decline in open interest, reflecting reduced speculative forces from the derivative market. SHIB prices ride a mid-term sideways trend resonating within the formation of a descending triangle pattern. Shiba Inu, the popular dog-themed meme cryptocurrency, plunged another 4.28% during Wednesday’s U.S. market hours. The selling pressure came as a renewed bearish momentum in the crypto market after a relief rally weakened, projecting a risk of continued correction in these assets. As the futures contract tied to SHIB witnessed a notable decline, the coin price teetered at the psychological level of $0.00001. Is a major breakdown looming? Volatility Wipes Out SHIB Leverage While Exchange Outflows Signal Accumulation Since last month, the Shiba Inu price has experienced a notable correction from $0.00001484 to the current trading price of $0.00001018, accounting for a 31% loss. Subsequently, the asset market cap also plunged to $6.8 billion. Amid this pullback, the coin price witnessed a massive sell-off on October 10, which temporarily pushed the asset’s value to $0.00000678 before reclaiming its position above the psychological level of $0.00001. The drastic increase in market volatility sparked massive liquidations of Shiba Inu (SHIB) futures contracts, wiping out millions in leveraged positions and driving open interest to a sharp decline. According to Coinglass data, SHIB’s total futures open interest has dropped from $206 million to $103 million within the past two weeks – a whopping 50% decrease. Coinglass This dramatic decline suggests that speculation surrounding SHIB has cooled down significantly, with traders adjusting leveraged positions and cutting high-risk positions. The contraction in open interest is quite frequently a reset of market leverage, which could dampen short-term volatility and prepare the price base for a more stable level if spot demand is regained. Despite the fact that market FUD was everywhere, Shiba Inu (SHIB) had a series of stark negative spikes in its exchange net flow as prices flirted with a breakdown below the psychological critical point of $0.00001. According to the data provided by CryptoQuant, on October 10, the biggest liquidation event in the history of cryptocurrencies, the exchange net flow of SHIB dropped to -903,075,035 tokens, which indicates that a large number of withdrawals from trading platforms occurred. The trend continued deeper the next day, with net flows declining to -1,037,500,588, followed by another -721,919,646 on Sunday. CryptoQuant These successive negative readings indicate that investors were increasing their withdrawals of SHIB from exchanges in an accelerated manner, indicating a possible transition to accumulation behavior or decreased sell-side pressure despite increasing market uncertainty. Shiba Inu Price Holds Major Support at Triangle Pattern The daily chart analysis shows the Shiba Inu price correction currently seeks support at the bottom trendline of a descending triangle pattern. Since August 2024, the coin has witnessed dynamic support from the lower trendline, acting as a major accumulation zone for buyers to recuperate the bullish momentum. However, the chart setup also offers a declining trendline from the upside, acting as a dynamic resistance to restrict buyers’ motive for higher levels. As a result, the Shiba Inu price continues to resonate within two converging levels, indicating an imminent breakout move is looming in the near future. A bearish breakdown below the bottom trendline and $0.00001 psychological support would accelerate the selling pressure and bolster a fall towards the next significant support at $0.00000844. SHIB/USDT -1d Chart On the contrary, if consolidation manages to build sufficient bullish momentum, a potential breakout from the overhead resistance would signal a bullish shift in SHIB’s dynamics.