Shiba Inu Price Flops Despite Climbing Open Interest on CEXs

Open Interest-based fund rate soars to yearly heights, but why does SHIB’s price movement fail to reflect it?

Robot dissapointed with Shiba Inu's low numbers.
Created by Kornelija Poderskytฤ— from DailyCoin
  • Shiba Inu (SHIB) continues the course of extended monthly deficits.
  • Coinglass data shows a tremendous Open Interest (OI) spike for SHIB.
  • SHIB community reacts to plummeting SHIB price with a 262% hike in burns.

Shiba Inu has made waves in the crypto derivatives sector over the weekend, as SHIBโ€™s Open Interest (OI) hit $18 million. As a result, the Open Interest-weighted funding rate claimed a yearly high on January 20, 2024, as the canine coin hovered around the $0.00000940 price range.

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According to the blockchain analytics platform Coinglass, OKX exchange takes the lionโ€™s share of Shiba Inu Derivatives trade with $7.5M in Open Interest, while Huobi and Bitget encompass $5.04M and $3.35M, respectively. The overall long vs. short position ratio is 1.9753, while OKX customers seem even more bullish on SHIB with a 2.02 long vs. short ratio.

SHIB price chart.

The hike in Shiba Inu perpetual trades on top centralized platforms has momentarily boosted SHIBโ€™s price to $0.00000969. Still, the confluent resistance barrier rejected SHIB below the price range for the fifth time in seven days.

Bears Tighten Their Grip on Shiba Inu

The on-chain data gathered by Coinglass affirmed Shiba Inuโ€™s status as a long-term investment to many crypto holders using centralized platforms (CeFi). However, SHIBโ€™s latest price movement comes amid a market-wide pullback, as the global market cap lost 3.5% of its value in the last 24 hours.

As SHIB grapples with the key support level at $0.000009, the crypto bears have already squeezed Shiba Inu into a 19% monthly deficit. An additional 5.3% drop on Monday and a shortfall below the aforementioned price range raised concerns among investors, who sent over 50M of SHIB tokens to burning addresses over the last 24 hours. Consequently, SHIB burn tracker Shibburn reported a 262% daily upswing in SHIB burns, but with no immediate effect on the canine coinโ€™s market value.

On The Flipside

  • Shiba Inu burns in the millions rarely tend to reflect on the coinโ€™s price.
  • SHIB Derivatives trading dropped in volume by 14.56% in the last 24 hours.

Why This Matters

The Open Interest-based funding rates allude to the popularity and investor sentiment of the cryptocurrency.

Explore DailyCoinโ€™s latest crypto news:
Binance Teases โ€˜Significantโ€™ Multi-Chain Token Burn
BlackRock Rejects XRP ETF Noise: Focusing on Bitcoin for Now

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Tadas Klimasevskis

Tadas Klimaลกevskis is a DailyCoin Journalist, covering memecoins & latest developments. Tadas has moderate holdings in SHIB, HBAR, LTC, MATIC and a selection of low-cap meme currencies.

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