Shiba Inu (SHIB) Open Interest Surges. Here’s The Implication

Shiba Inu has seen a notable increase in derivatives activity over the past 24 hours, signaling growing speculative interest in the asset. However, spot traders remain cautious, contributing to continued pressure on the token’s price.

Data from CoinGlass indicates that open interest in Shiba Inu futures has risen by 8% in the last day, reaching $75.6 million. This growth in open interest suggests that more traders are taking positions in anticipation of significant price movements. 

Despite this heightened activity in the derivatives market, many token holders remain uncertain about Shiba Inu’s short-term trajectory, which has led to continued inflows into cryptocurrency exchanges.

Market Activity and Trading Volume

Shiba Inu’s price has increased modestly in the past 24 hours, following the broader pattern set by Bitcoin and other major cryptocurrencies. The recovery is mild, and the token remains below previous levels after experiencing a double-digit correction over the last month and notable bearish signals. 

The rise in derivatives interest coincides with a surge in trading volume, reflecting higher market participation. 

Shiba Inu’s trading activity has increased over the past 24 hours. CoinGlass shows volume rising 16% to $109.23 million, while CoinMarketCap reports a 20% jump, bringing total activity to $129.8 billion. Futures trading is also picking up, with $9.5 million in contracts entering the market compared with $8.43 million leaving, which helps explain the recent rise in open interest.

Spot Market Skepticism

Despite the positive signals in the derivatives market, spot traders continue to demonstrate caution. Data reveals that $7.78 million worth of Shiba Inu has flowed into exchanges in the last 24 hours, while $7.35 million has moved out. Despite bullish predictions, these flows suggest that holders are positioning themselves for potential sell-offs, adding pressure to the token.

The trend remains consistent over the 3 and 5-day periods, indicating a persistent cautious sentiment among spot traders. This cautious stance highlights the contrast between the optimism in derivatives markets and the conservative approach of spot holders.

The activity in both futures and spot markets is likely shaping Shiba Inu’s short-term price movement. The data shows that active market participants are buying at current prices, which has helped support the token’s small recovery. 

SHIB is currently trading around $0.000006. Capturing $0.0000067 would be an important step toward a possible rebound to $0.0000099 and $0.0000148.

Whether Shiba Inu can keep going up will depend on how active both spot and futures markets are. The derivatives market shows renewed trader interest, but caution among spot holders is still noticeable.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

Follow us on Twitter, Facebook, Telegram, and Google News

The post Shiba Inu (SHIB) Open Interest Surges. Here’s The Implication appeared first on Times Tabloid.