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After an earlier drop, Shiba Inu open interest saw a surprising reversal, flipping back into the green.
Shiba Inu's open interest, an indicator of liquidity on the markets, increased 0.45% in the last 24 hours to $87.19 million, according to CoinGlass data.
While the increase might seem small, it remains significant given a prior drop as Shiba Inu price fell with traders reducing exposure.
The slight increase in open interest comes despite Shiba Inu's price drop. At press time, SHIB was down 0.51% in the last 24 hours to $0.00000786 and down 6.06% weekly.
SHIB price action
The crypto market is largely trading in the red, as gains in equities and a weaker U.S. dollar failed to translate into a sustained rise for crypto after a volatile week.
The Shiba Inu price was likewise down, falling 8.15% weekly. Most major cryptocurrencies remain down between 7% and 12% over the past week, indicating that sentiment on the crypto market remains fragile.
As Shiba Inu open interest rebounds, the current setup hints at a reset as leverage gets flushed out of the market. This reset is, however, a quiet one, as volumes drop across spot and derivatives markets.
According to CoinMarketCap data, Shiba Inu trading volume across spot exchanges is down 27.87% in the last 24 hours to $82.26 million.
Traders seem to be taking a pause to decide the market's next move and adjust accordingly. Shiba Inu faces immediate resistance at $0.000008, which coincides with the daily MA 50. Since Jan. 14, attempts by Shiba Inu to reclaim this level have not succeeded.
If $0.000008 is conquered, Shiba Inu will aim at $0.000009 and $0.00001 next, while support is expected in the $0.000007 range if the price drops further. Another possibility is sideways trading below the daily MA 50 before the next upward move.
Gamza Khanzadaev
Tomiwabold Olajide
Godfrey Benjamin
Arman Shirinyan