Shiba Inu (SHIB) Attracts More Long Traders; Short-Term Correction Lurks
Analysis of the price movement of this coin on a 3-day chart shows a trend in a parallel channel pattern since April 12. The SHIB price itself was surrounded by resistance at US$0.000027 and found support at US$0.00002.
Long SHIB Investors Are Betting on a Price Increase
SHIB futures OI shows an upward trend since the beginning of the month. At the time of publication of the article, the total OI futures of this meme coin stood at US$89 million, the highest since April 4.
Futures open interest itself refers to the total number of futures contracts that have not been closed or settled. When this figure jumps, it indicates that more and more traders are entering the futures market for the asset in question.
Meanwhile, the SHIB funding rate has displayed a positive value, thus confirming that the increase in OI futures is a bullish signal.
Funding rates are used in perpetual futures contracts to ensure the contract price remains close to the spot price. Positive values indicate strong demand for long positions.
Thus, an increase in OI futures along with a positive funding rate indicates a surge in demand for long positions.
SHIB Price Will Drop If…
While SHIB futures traders open positions to bet on a price rise, readings from the price chart suggest a possible short-term decline.
First, the dots on the Parabolic SAR indicator are above the current SHIB price. This position has been in place since April 3.
This indicator measures the direction of asset prices and the potential reversal or reversal of a trend. When the dots appear above the asset price, it indicates that the current trend is down and may continue if sentiment does not improve.
Additionally, SHIB’s Money Flow Index (MFI) is below the 50 neutral zone at the time of publication. SHIB’s MFI figure of 44.62 indicates that selling pressure outweighed accumulation among traders.
This indicator measures the flow of money in and out of an asset over a certain period. The value ranges from 0 to 100. A number below 50 indicates that, on average, there are more price drops accompanied by higher trading volume than price increases.
If this trend continues, the SHIB price could slip from the US$0.000026 area and settle at US$0.000024.
However, if this prediction does not come true, the SHIB price is expected to shoot up to the level of US$0.00003.