Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Data from CoinGlass shows that Shiba Inu has experienced a 306% decline in futures flow in the past 24 hours. The inflow of Shiba Inu futures was $3.82 million while the outflow was $4.25 million.
Futures inflow estimates the net active buying and selling volume for crypto derivatives while futures outflow indicates the funds leaving derivatives exchange wallets (margin and futures accounts), possibly indicating that traders are removing the margin collateral. When the outflows are higher than the inflows, it may indicate that more capital is leaving the derivatives markets. This could suggest less leverage, profit taking, or traders moving money to cold storage.
In the case of Shiba Inu, the futures outflow and inflow difference was negative, amounting to $431,100, which is a 306.58% drop.
Traders reassess risk strategy
At the time of writing, SHIB was down 0.4% in the last 24 hours to $0.00000561 as most large caps traded flat within this timeframe. This might point to waning appetite for broad large-cap crypto exposure.
A few crypto assets are trading higher while the majority remain flat. This suggests that capital is being redeployed strategically rather than exiting the market altogether.
Shiba Inu rebounded following Sunday's drop to a low of $0.00000549, albeit the price remains in a range since mid-May. Price declined from a high of $0.00000669 on May 11. Bulls' attempt to sustain a rebound failed as SHIB fell further towards the weekend.
If the price recovers from current levels, Shiba Inu will eye a return above the daily MA 50 (moving average) at $0.000006 and $0.0000066. On the other hand, if the declines continue, SHIB might test support ahead at $0.0000052 and then $0.000005.
However, crypto sentiment seems to be improving. The Fear and Greed Index according to CoinMarketCap is at 40 (neutral), up from 39 (fear) the day before.
Dan Burgin
