Shiba Inu Price Forecast, Can this $23M Signal Turn the Tide?

Shiba Inu (SHIB) price consolidated above the $0.000025 support level on April 26th after the team’s $12 million fundraising triggered a retest of $0.000029 earlier in the week.

SHIB price rises 41% on weekly basis

Shiba Inu price soared 53% from April 19th to April 22nd to a weekly high of 0.000029 after the world’s largest meme coin project got off to a strong start with the team’s $12 million funding announcement reached the dollar.

Shiba Inu (SHIB) Price Action | April 20th to April 26th | TradingView
Shiba Inu SHIB Price Action | April 20th April 26th | TradingView

Since then, SHIB has retraced 10% towards the $0.000025 support area, reducing weekly gains to 41% as of press time on April 26th. However, an interesting recent trend observed in the derivatives market suggests that bulls are still on the prowl for further upside.

Speculative traders enter into new SHIB futures contracts worth $23 million

Beyond Shiba Inu’s 10% price correction over the past three days, the broader memecoin market has fallen this week. Companies like BONK and DOGE recorded double-digit profits during this period.

Speculative traders have been accumulating new futures contracts at a pace disproportionate to price trends, hoping to get ahead of SHIB’s next recovery.

coin glass” Open interest The metric tracks the total amount of active futures contracts for a particular crypto asset.

Shiba Inu (SHIB) Open Interest vs Price | Source: Coin GlassShiba Inu (SHIB) Open Interest vs Price | Source: Coin Glass
Shiba Inu SHIB open interest vs price | Source Coin Glass

SHIB’s open interest at the beginning of the week was $51.75 million. According to the latest data, SHIB open interest has increased by $23 million since April 19, reaching a level of $75.1 million as of April 26, at the time of writing.

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Notably, this represents a 45% increase in Shiba Inu open interest, which is higher than the current 41% increase in SHIB price within a weekly period.

If open interest exceeds price growth, it indicates overwhelming bullish sentiment among speculative traders.

First, an increase in open interest suggests increased participation and interest from market participants, indicating confidence in an asset’s future price potential. This influx of new positions increases liquidity and trading activity, which could further fuel upward price momentum.

Second, if open interest increases faster than price, it may indicate that traders are accumulating long positions in anticipation of future price increases or are undertaking a hedging strategy.

Therefore, this $23 million increase in SHIB open interest could portend a further rally towards the $0.000030 price milestone in the near future.

SHIB price reverses after rising 54%

Shiba Inu price rose 54% from April 19th to April 22nd to a weekly high of 0.000029 after the world’s largest meme coin project got off to a strong start with the team’s $12 million funding announcement reached the dollar.

Shiba Inu (SHIB) Price Action | April 20th to April 26th | TradingViewShiba Inu (SHIB) Price Action | April 20th to April 26th | TradingView
Shiba Inu SHIB Price Action | April 20th April 26th | TradingView

Since then, SHIB has rallied 10% towards the $0.000025 support area as of writing on April 26th. However, an interesting recent trend observed in the derivatives market suggests that the bulls are still on the prowl for further gains.

Speculative traders enter into new SHIB futures contracts worth $23 million

Beyond Shiba Inu’s 10% price correction over the past three days, the broader memecoin market has fallen this week. PEPE and DOGE, among others, recorded his double-digit profits during this period.

Speculative traders have been accumulating new futures contracts at a pace disproportionate to price trends, hoping to get ahead of SHIB’s next recovery.

coin glass” Open interest The metric tracks the total amount of active futures contracts for a particular crypto asset.

Shiba Inu (SHIB) Open Interest vs Price | Source: Coin GlassShiba Inu (SHIB) Open Interest vs Price | Source: Coin Glass
Shiba Inu SHIB open interest vs price | Source Coin Glass

SHIB’s open interest at the beginning of the week was $51.75 million. According to the latest data, SHIB open interest has increased by $23 million since April 19, reaching a level of $75.1 million as of April 26, at the time of writing.

Notably, this represents a 45% increase in Shiba Inu’s open interest, which is higher than the current 40% growth in SHIB price within a weekly period.

If open interest exceeds price growth, it indicates overwhelming bullish sentiment among speculative traders.

First, an increase in open interest suggests increased participation and interest from market participants, indicating confidence in an asset’s future price potential. This influx of new positions increases liquidity and trading activity, which could further fuel upward price momentum.

Second, if open interest increases faster than price, it may indicate that traders are accumulating long positions in anticipation of future price increases or are undertaking a hedging strategy.

Therefore, this $23 million increase in SHIB open interest could portend a further rally towards the $0.000030 price milestone in the near future.

Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. We encourage our readers to conduct thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.

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