Shiba

Flow

bullish

Shiba Inu

You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/shiba-inu-faces-decline-in-futures-market-activity/" data-wpel-link="internal">Shiba Inu Faces Decline in Futures Market Activity</a> 
The Shiba Inu futures market has seen a decline in activity over the past few weeks. This trend is reflected in the falling open interest in futures, currently at its lowest level since February 14. This decline is due to the drop in the memecoin’s price. At the time of writing, SHIB is trading at $0.000014, the same price level it reached on March 1. 
<h2 class="p1" style="text-align: justify" id="what-s-happening-with-shib">What’s Happening with SHIB?</h2> 
Coinglass <a href="https://newslinker.co/how-does-artificial-intelligence-work/" target="_blank" rel="noopener" data-wpel-link="exclude">data shows</a> that SHIB’s futures open interest is $26 million. It has been steadily declining since July 19 and has fallen by 51% in the last 16 days. The open interest of a futures asset represents the total number of futures contracts that have not yet been closed. When it decreases, it indicates reduced market activity and interest in the underlying asset. It is generally interpreted as a bearish signal, meaning investors have less confidence in the asset’s future price. 
<img loading="lazy" loading="lazy" decoding="async" class="aligncenter wp-image-376913 size-full" src="https://coin-turk.com/wp-content/uploads/2024/08/coinglass-1-scaled.webp" alt="" width="2560" height="708"> 
However, SHIB’s predominantly positive funding rate on <a href="https://en.coin-turk.com/kraken-expands-its-activities-in-europe-by-acquiring-a-dutch-crypto-trading-platform/" data-wpel-link="internal">cryptocurrency exchanges</a> suggests this may not apply to the memecoin. For context, since reaching a year-to-date peak of $0.000035 on March 6, SHIB’s price has continued to trend downward. However, the weighted funding rate has remained mostly positive since then, highlighting the ongoing demand for long positions among futures investors. 
<img loading="lazy" loading="lazy" decoding="async" class="aligncenter wp-image-376912 size-full" src="https://coin-turk.com/wp-content/uploads/2024/08/shib-veri-scaled.webp" alt="" width="2560" height="708"> 
Funding rates are a mechanism used in perpetual futures contracts to ensure that the contract price stays close to the spot price of an asset. When they are positive, it means more investors are buying the asset, expecting a price increase, which is a bullish signal. 
<h2 class="p1" style="text-align: justify" id="shib-chart-analysis">SHIB Chart Analysis</h2> 
The Relative Strength Index (RSI) evaluated on SHIB’s daily chart indicates a potential price recovery, with the indicator’s value recorded at 29.03. An asset’s RSI measures overbought and oversold <a href="https://finance.coin-turk.com/" data-wpel-link="exclude">market conditions</a>. At 29.03, SHIB’s RSI data suggests the memecoin might be oversold and ready for an upward correction. 
<img loading="lazy" loading="lazy" decoding="async" class="aligncenter wp-image-376911 size-full" src="https://coin-turk.com/wp-content/uploads/2024/08/shib-scaled.webp" alt="" width="2560" height="1205"> 
However, data from other indicators suggest that the recovery may not occur in the near term. For instance, SHIB’s price decline has been accompanied by a falling Chaikin Money Flow (CMF). At the time of writing, SHIB’s CMF data is below zero at -0.15 and trending downward. 
<img loading="lazy" decoding="async" loading="lazy" class="aligncenter wp-image-376910 size-full" src="https://coin-turk.com/wp-content/uploads/2024/08/veri-shib-scaled.webp" alt="" width="2560" height="1205"> 
This indicator tracks the money flow into and out of an asset. A CMF value below zero is a sign of market weakness. When a falling price is combined with a falling and negative CMF, it indicates a strong bearish trend. A declining CMF implies that more money is flowing out of the asset than into it, reinforcing the bearish trend and clearly showing that selling pressure significantly outweighs buying pressure. 
If this trend continues, SHIB‘s price could drop to $0.000012. It last traded at this price level on July 5. However, if the market trend reverses and more liquidity starts flowing into SHIB than out, it could witness an uptrend and push its price to $0.000020. 
<img loading="lazy" decoding="async" loading="lazy" class="aligncenter wp-image-376908 size-full" src="https://coin-turk.com/wp-content/uploads/2024/08/shib-grafik-scaled.webp" alt="" width="2560" height="1205"> 
<h5>The post first appeared on COINTURK NEWS: <a href="https://en.coin-turk.com/shiba-inu-faces-decline-in-futures-market-activity/" data-wpel-link="internal">Shiba Inu Faces Decline in Futures Market Activity</a></h5>
The post <a href="https://en.coin-turk.com/shiba-inu-faces-decline-in-futures-market-activity/" data-wpel-link="internal">Shiba Inu Faces Decline in Futures Market Activity</a> appeared first on <a href="https://en.coin-turk.com" data-wpel-link="internal">COINTURK NEWS</a>.

Shiba Inu Faces Decline in Futures Market Activity

Table of Contents

COINTURK NEWS

Other articles published on Aug 4, 2024

Dogecoin (DOGE) Whales Pull $30 Million From Exchanges: Bull Run Incoming?

Dogecoin Core reproducibility update ‘imminent’

Here Are How Many Shiba Inu Holders Are In Loss After That Crash

Shiba Inu (SHIB) Sees 625% Increase in Whale Inflows—Could This Signal a Price Bottom?

Shiba Inu Holders Confident SHIB Price Can Hit $1; Crypto Experts Say Rollblock (RBLK) and Dogeco...

Trending Crypto Updates For This Week

Join our free newsletter for daily crypto updates!