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Shiba Inu open interest is on an upward trajectory despite a sideways price trend as risk appetite returns to the derivative market.
Notably, the doggy-themed, light-hearted meme coin has struggled amid the ongoing market-wide downturn and the escalating battle between Israel and Iran. Meanwhile, market speculators appear keen to capitalize on this volatility, as evidenced by rising futures positions in Shiba Inu ($SHIB).
Key Points
- Shiba Inu open interest is on an upward trajectory despite a sideways price trend as risk appetite returns to the derivative market.
- Data from Coinglass shows that Shiba Inu open interest has grown 15.74% in the past 24 hours to $61.62 million.
- Typically, such a spike precedes a price shift, dependent on the bias of the heavy bets.
- Adding to the OI increase, $SHIB’s spot and futures volume have also surged 73.94% and 36%, respectively.
- Shiba Inu price has dropped 1.29% over the past 24 hours to $0.00000544 despite rising OI and volume.
Shiba Inu Open Interest Soars 14%
Data from Coinglass shows that Shiba Inu open interest has grown 15.74% in the past 24 hours. For the uninitiated, this metric measures the value of all open futures positions tied to a token over a specified period. As such, a rise shows that more users are opening more derivative bets, and a drop suggests otherwise.
The data show that contracts worth 11.02 trillion $SHIB are currently active in the global derivatives market. In dollar terms, this represents $61.62 million.
Recall that an earlier The Crypto Basic report highlighted a slide to $52.8 million on Monday. That figure has since climbed significantly to the current valuation in just 24 hours, indicating a strong influx of market speculators.
Typically, such a spike precedes a price shift, dependent on the bias of the heavy bets. As liquidity enters the market increasingly, assets tend to move in tandem.
Spot and Futures Volume Explodes
Adding to the OI increase, $SHIB’s spot and futures volume have also surged alongside.
Specifically, the futures volume spiked nearly 36% over the past 24 hours to $179 million, confirming growing participation in the derivatives market. Meanwhile, the taker buys and sells show indecision in the direction of these bets, with the former at 49.69% and the latter at 50.31%.
Spot volume saw the most notable shift, expanding a staggering 73.94% in the past 24 hours to $36.89 million. Further analysis suggests more sell-side activities among holders, with taker sell at 51.66% and taker buy at 48.34%.
Meanwhile, the Shiba Inu price has dropped 1.29% over the past 24 hours to $0.00000544, adding more context to the spike in OI and volume. The dip and the perspective from the taker sell show that holders are selling their stash amid market uncertainty. Futures traders also seem to be positioning themselves for further downtrend, hence the uptick.
What’s Next for Shiba Inu Price
In the meantime, Shiba Inu remains in bearish territory amid prolonged price downturns. The meme coin has corrected nearly 6% in just three days in March, and it is not looking good on lower and higher timeframes.
Nonetheless, $SHIB has held above the $0.00000507 support despite the building bearish trend, which is a good sign. As long as this level holds, the hopes of a recovery to a higher price remain. When market conditions brighten, a recent analysis points to a comeback this year, with the first target an over 3x rally to $0.00001678.
However, breaking down below this level puts $SHIB at risk of another 75% downturn to $0.00000138. The closest critical support before this is the $0.00000304 level.