Shiba Inu (SHIB) may have had a week of consolidation, but it’s far from being overlooked by traders. With a steady rise in futures open interest since mid-March, this cryptocurrency has been on the radar of many investors.
And while its recent performance hasn’t been particularly outstanding, with a 1.7% increase in the past 24 hours and a 1.2% decrease in the last seven days, the current price of Shiba Inu at $0.00001113, according to Coingecko, still has the potential to attract attention.
Source: Coingecko
But what is driving the rising futures open interest on SHIB, and what does this mean for the future of this cryptocurrency?
Understanding the Significance of High Open Interest in Shiba Inu
When it comes to the world of trading, the term “open interest” carries a lot of weight. In essence, it refers to the number of active positions traders have taken in a derivatives contract. And when the open interest is high, it means there’s a significant amount of interest in a particular asset, which can be a strong indicator of market sentiment.
As for Shiba Inu, the open interest has been on the rise since March 14. In fact, according to data from Coinglass, the total number of SHIB contracts that were opened at press time was a staggering 2.46 trillion. That’s a significant number, and it suggests that a large number of traders have taken active positions in SHIB derivatives contracts.
But what does this high open interest mean for the future of SHIB? Well, it could indicate that traders are bullish on the coin and that they see potential for growth in the coming days, weeks, or even months.
SHIB’s High Open Interest and Low Volatility: What It Means for Traders
Despite the high open interest on Shiba Inu, traders should be aware that this is happening during a period of low volatility. This means that the likelihood of consistent price swings for SHIB is relatively low.
In addition, the volatility contraction that has been in effect since March 20 has not changed. However, analysis of the Bollinger Bands (BB) reveals that SHIB is neither overbought nor oversold. This indicates that a significant change in direction for SHIB is not expected at this time.
SHIB total market cap currently at $6.5 billion on the daily chart at TradingView.com
As a result, traders may need to exercise patience and wait for further market developments before expecting significant gains or losses on their SHIB positions.
While the high open interest is a positive sign for the cryptocurrency, traders should also keep in mind that market conditions and volatility play a crucial role in determining the potential success of their investments.
-Featured image from Jolanta Beinarovica/Shutterstock.com
Source: https://bitcoinist.com/shiba-inu-futures-open-interest-soars/