thecryptobasic.com
Shiba Inu, the second-largest meme coin by market cap, is gaining momentum, as market participation has rekindled in the past 24 hours.
Notably, this has reflected in $SHIB’s open interest and trading volume. With the broader crypto market looking stable, analysts are now observing how the price of Shiba Inu will react to these catalysts.
Key Points
- Shiba Inu open interest (OI) has increased 2.5% in the past 24 hours to 8.7 trillion $SHIB.
- The OI growth correlates with a 38% spike in trading volume in the past 24 hours to $109.49 million.
- A breakdown of the volume shows that Shiba Inu’s futures volume has increased 31.8% to $161.07 million and spot volume by 81.67% to $22.6 million.
- $SHIB needs to hold current support levels, particularly $0.0000056 and $0.0000050, to see further upside.
Shiba Inu OI Rises 2.5% to 8.7 Trillion
Data from Coinglass shows that the Shiba Inu open interest (OI) has increased 3.7% in the past 24 hours to 8.7 trillion $SHIB. Notably, its dollar valuation stands at $53.86 million.
OI reflects the value of all open futures positions at a given time. The rise in $SHIB’s OI signals that speculative bets have increased over the past 24 hours, as traders foresee a notable price shift and are positioning to benefit. In general, it is bullish for the meme coin, as such an uptick usually catalyzes further price moves.
Meanwhile, the futures flow has appreciated, reflecting this increased traction. The indicator shows a net inflow of $663,810, or 110.7 billion $SHIB, as inflows of $7.91 million outpaced outflows of $7.25 million.
Trading Volume Spikes 38%
The OI growth has correlated with a 38% spike in trading volume in the past 24 hours. Per CoinMarketCap, it grew to $109.49 million, further reinforcing the growing user participation for Shiba Inu.
A breakdown of the volume shows that Shiba Inu’s futures volume has increased 31.8% to $161.07 million, adding $51.35 million in the past day. The taker buys stand at 50.81%, and the taker sells at 49.19%, suggesting that the futures volume is biased towards further price growth.
Interestingly, the $SHIB spot volume saw a comparably higher increase in the same timeframe. It surged 81.67% to $22.6 million. The upsurge implies that spot trading activity has grown considerably in the past 24 hours, with bias still favoring taker buy (51.22%) over taker sell (48.78%).
Rising volume confirms that a price move is backed by strong market participation. When such an increase persists, it provides the momentum for further directional price shifts.
Shiba Inu Rises 4%, but What’s Next?
$SHIB has also increased in price along with these metrics. It has risen by 4% to $0.00000604 at the time of writing, in line with the broader market trend.
Notably, the meme coin has stabilized around the current market price after several months of steep decline. As market conditions begin to improve, analysts believe $SHIB is slowly entering an accumulation phase.
Recently, the token broke above a descending trendline on the daily timeframe that has suppressed its price for over one month. With bottoming signals forming, momentum is shifting towards a bullish reversal.
However, $SHIB needs to hold current support levels, particularly the local demand zones at $0.0000056 and $0.0000050. It also needs to start reclaiming key moving averages. Having reclaimed the 23-day and 50-day MAs, it now targets the 100 and 200 MAs.
The next price target, if upside momentum continues, is the $0.0000065 resistance level. Reclaiming this level with strong volume paves the way for rallies to $0.0000075 and then $0.0000081.