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Shiba Inu (SHIB), a dog-themed meme coin, has recorded a 16% increase in futures activity, indicating rekindled interest from traders. The spike in open interest suggests that market participants are regaining confidence in a possible uptick in price outlook for the meme coin soon.
Shiba Inu's price stabilizes above key support level
CoinGlass data indicates that a total of 11.21 trillion SHIB has been committed to the futures market. This volume is worth approximately $69.2 million, which traders bet on the meme coin.
Generally, open interest gives investors and market participants insight into the demand for the meme coin. Hence, the 16% uptick signals renewed interest in SHIB despite its price struggles in the crypto market.
This confidence on the part of traders appears to be paying off as Shiba Inu has managed to break its downward decline. The price has stabilized in the last 24 hours, with the price staying above the critical pivot of $0.000005967.
The meme coin had dropped from a daily high of $0.0000064 to a low of $0.000005971, threatening the support level. As of this writing, Shiba Inu changes hands at $0.000006038, representing a 0.48% increase within the last 24 hours.
However, trading volume remains in the red zone and is a source of concern to investors. SHIB has plunged by 47.35% in volume to $180.48 million. Although the meme coin’s price is moving with the market tide and some investors have pushed open interest up by 16%, a large segment of traders remains cautious.
Most of the traders showing optimism for Shiba Inu are on the Gate exchange. They represent 41.64% of the total open interest in the last 24 hours, as they committed 4.77 trillion SHIB valued at $28.82 million.
Other top exchanges include Bitget, LBank and OKX, with investors committing 13.6%, 1.28% and 11.21%, respectively. In fiat terms, their investment is worth $9.41 million, $7.81 million and $7.76 million, in that order.
Exchange data shows mixed SHIB sentiment
It is worth mentioning that although volatility concerns remain in the broader crypto market, Shiba Inu has recorded some level of stabilization. In the last 24 to 48 hours, over 700 billion SHIB flows have been registered in different exchanges. This movement signals easing off of the selling pressure.
Notably, there have been more outflows compared to inflows, suggesting that investors are withdrawing the meme coin into personal wallets. They appear to have reconsidered their decision to sell.
Now, analysts are projecting a possible 30% upward move in price for Shiba Inu. Such a development could set SHIB up for a longer rally if broader market volatility eases off.
Godfrey Benjamin
Tomiwabold Olajide
Caroline Amosun