Derivatives interest in Shiba Inu has gained weight over the past 24 hours, but spot traders remain skeptical, adding renewed pressure on prices.
Data confirms a rise in open interest (OI), suggesting that more speculative traders are betting on Shiba Inu to make a move from here. Despite these, token holders remain uncertain about the asset’s next direction, resulting in persistent inflows into exchanges.
Key Points
- Derivatives interest in Shiba Inu has gained weight over the past 24 hours, but spot traders remain skeptical, adding renewed pressure on prices.
- Shiba Inu is up 1.3% in the past 24 hours, following the template set by Bitcoin and other major cryptocurrencies.
- In the past 24 hours, data shows an 8% rise in Open Interest to $75.6 million in tandem with the slight price increase.
- Typically, such an uptick precedes a notable price shift, as it reflects growing market participation and higher liquidity.
- Amid the derivative enthusiasm, data shows that spot traders are still skeptical, as $7.78 million in ADA flowed into exchanges in the past 24 hours, while $7.35 million flowed out.
- While these flows are increasing, the positive bias in trading volume across spot and futures markets might provide the fuel to sustain the uptrend seen over the past 24 hours.
Shiba Inu OI Shows Renewed Interest
Shiba Inu is up 1.3% in the past 24 hours, following the template set by Bitcoin and other major cryptocurrencies. While this is positive, $SHIB remains well within bearish territory, reflected in its double-digit correction in the past 30 days.
Amid the slight recovery, CoinGlass data shows growing Shiba Inu open interest. For the uninitiated, this metric tracks the value of all the open futures positions on an underlying asset. An increase indicates more derivative bets, while a decline implies less interest.
In the past 24 hours, CoinGlass data shows an 8% rise in OI to $75.6 million in tandem with the slight price increase. Typically, such an uptick precedes a notable price shift, as it reflects growing market participation and higher liquidity.
A growth in trading volume and futures flows further confirms this. CoinGlass data shows an over 16% increase in volume over the past 24 hours to $109.23 million. Meanwhile, CoinMarketCap displays a higher 20% volume spike to $129.8 billion.
Furthermore, Shiba Inu futures flows indicate an acceleration in derivative contract value, as inflows of $9.5 million in the past 24 hours beat outflows of $8.43 million. An aggregation of these explains the open interest spike.
Spot Traders Still Skeptical
Despite the derivative enthusiasm, CoinGlass data shows that spot traders are still skeptical. Over the past 24 hours, more $SHIB tokens have flowed into exchanges, adding selling pressure. While this does not indicate sales, it increases the chances of immediate liquidation if market conditions worsen.
Specifically, $7.78 million flowed into exchanges in the past 24 hours, while $7.35 million in $SHIB flowed out. This trend continues in the 3- and 5-day timeframes, confirming the sell-off disposition of spot holders.
While these flows are increasing, the positive bias in trading volume across spot and futures markets might provide the fuel to sustain the uptrend seen over the past 24 hours. The spike in volume is accompanied by slightly higher taker buy volume, signaling that most activity is skewed towards taking the $SHIB price northward.
In the meantime, $SHIB trades near the $0.000006 support. A recent analysis suggests reclaiming $0.0000067 is crucial for a rebound to $0.0000099 and $0.0000148.
