Shiba Inu Derivatives Volume Crashes 49%, Bearish or Bullish Signal?
Analysis
Price Impact
HighA nearly 50% drop in trading volume across both spot and derivatives markets for shiba inu indicates a significant reduction in investor interest and liquidity. while open interest saw a slight increase, the broader market downturn and a stalled us crypto bill are dampening overall sentiment.
Trustworthiness
HighThe article cites reliable and well-known crypto data aggregators like coinglass and coinmarketcap for its statistics, lending high credibility to the reported figures.
Price Direction
BearishThe substantial decline in trading volume suggests a lack of buying pressure and overall weakening conviction in shib. coupled with the current price dip, the broader market correction, and the liquidation of long positions, the immediate outlook leans towards continued downward pressure or consolidation at lower levels. the slight rise in open interest is ambiguous without knowing the directional bias of those bets and is overshadowed by the significant volume crash.
Time Effect
ShortThe market's reaction to the stalled crypto bill and the subsequent pause in trading activity are primarily short-term responses to immediate news and sentiment. while the pause might extend, a significant long-term shift would require more fundamental changes or catalysts.
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Cover image via U.Today Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. Read U.TODAY on Google News Shiba Inu volumes have dropped nearly 50% on the derivatives market over the last 24 hours, as a fresh market twist emerges. Advertisement According to CoinGlass data, Shiba Inu derivatives volume fell 48% in the last 24 hours to $141.06 million; however, an interesting twist emerges as open interest has risen in the same time frame. Open interest indicates the total number of futures or options contracts on the market, often a measure of the amount of money invested in derivatives at any given time. HOT Stories Morning Crypto Report: Say Goodbye to 1.21% of All XRP, Shiba Inu (SHIB) Confirms Golden Cross: 23% Rally Expected, Cardano Price Prints Legendary Bull Pattern: ADA Next Silver? XRP, TSLA, and GME Among Top Searches on Elon Musk's X Crypto Market Review: XRP Loses Impulse; Bitcoin (BTC) Signals Oversold Conditions; Shiba Inu (SHIB) Rejected Under Tight Range Ripple CEO Breaks Silence on Coinbase Drama As several cryptocurrencies saw a drop in open interest over the last 24 hours, Shiba Inu open interest rose nearly 3% to $110.43 million, indicating that traders are making bets on the dog cryptocurrency. Advertisement At press time, SHIB was down 1.27% in the last 24 hours to $0.000008451 and down 2.6% weekly. Fresh market twist emerges Cryptocurrencies fell after a key crypto market structure bill stalled in the U.S. Senate, dampening sentiment after a recent rally. More than $240 million were liquidated across the crypto markets over the past day, according to CoinGlass, with long positions accounting for about $180 million of this figure. Advertisement Trading volumes have mostly dipped across spot and derivatives markets; Shiba Inu's trading volume on spot exchanges has dropped 46.42% in the last 24 hours to $93.15 million, according to CoinMarketCap data. Despite the drop in activity, some analysts suggest the market is pausing rather than reversing. Given low activity on the markets, traders may be taking a pause to assess the market's next move. Meanwhile, market sentiment has softened. The Crypto Fear & Greed Index returned to the neutral zone, now at 50 after briefly entering the "greed" earlier this week. Beyond cryptocurrencies, broader markets sent mixed signals, with stocks rebounding as jobless claims came in below expectations. It is quiet for now on the economic data front, but investors are looking to the week ahead when the personal consumption expenditures index, the Fed’s preferred inflation gauge, will be released and offer fresh insights into the economy. #Shiba Inu (SHIB) News #Shiba Inu