Key Highlights
- SHIB’s futures open interest grew 15.74% in 24 hours, reaching $61.62 million
- Spot volume increased 73.94% to $36.89 million, and futures volume rose 36% to $179 million
Shiba Inu (SHIB), the dog-themed meme cryptocurrency, is reportedly seeing an increase in in derivative trading activities despite its price struggling to break key resistance level.
The token is currently trading for $0.00000547, down 4.31% over the last 24 hours. However, data from Coinglass, shows that its open interest jumped about 11.85% over the same period, reaching about $62.48 million.
This means traders are opening more bets on the future price of the token as risk appetite returns to the market.
Significant surge in trading activity
In addition, SHIB’s spot and futures trading volumes also went up sharply, with nearly 74% to $36 million in spot volume, while futures volume increased by 41% to $225 million.
The data shows that taker buy and sell activity is almost evenly split, with spot trades slightly favoring sales at 51.66% and futures trades split 49.69% buy to 50.31% sell. This suggests traders are uncertain about the next price move.
The recent jump in open interest comes after the total value had fallen to $52.8 million on Monday. Now, with contracts worth 11.02 trillion SHIB active globally, more investors are joining the market. Analysts often note that large changes in open interest can come before price moves, depending on how traders place their bets.
Shiba struggle as price fail to recover
Meanwhile, SHIB price has been facing challenges lately. The token has lost almost 9% in the last 7 days and has even fallen around 60% over the past year. At the same time, the market value has dropped by 3.72% today to about $3.21 billion, which is far behind Dogecoin, which has more than $15 billion.
In a recent post on X, Analyst Ali Martinez warned that SHIB could fall to $0.00000138 if key support levels at $0.00000667 fail.
In addition, SHIB’s token burn program, which reduces supply to make the coin more valuable, has slowed. According to Shibburn, only 21,339 tokens were destroyed in 24 hours. Since 2022, over 410.7 trillion SHIB have been burned, leaving 585.47 trillion in circulation.
Shibarium, the layer-2 network meant to make transactions faster and cheaper, has also slowed after a September 2023 exploit, with daily transactions dropped from millions to just a few thousand.
However, there are some positive signs. SHIB held on exchanges have falling below 81 trillion tokens, which is the lowest since May 2021. This means that holders are not rushing to sell their positions.
In addition, the Relative Strength Index (IRS) is currently at 26, which means that the market is at an oversold level and buyers could take over soon.
Also Read: XRP Prepares For Rally As Long Term Bullish Pattern Appears
