Shiba Inu Open Interest Trajectory
The open interest of Shiba Inu (SHIB) has not followed the same trajectory as other cryptocurrencies. While major cryptocurrencies have seen a significant increase in open interest, SHIB’s open interest has remained relatively muted.
In August, SHIB’s open interest experienced a pump at the start of the current bull run. However, in the following months, it has remained considerably lower compared to other top cryptocurrencies.
According to data from Coinglass, SHIB’s open interest crossed $43 million in August but has struggled to return to this level. It currently hovers just below $20 million. This deviation from Bitcoin’s trends is noteworthy.
SHIB OI Deviates From Price
Another deviation of SHIB from the rest of the crypto market is its price movement in relation to open interest. While Bitcoin and Dogecoin have shown prices moving upward as open interest soars, SHIB’s price has remained fairly high despite low open interest.
This suggests that a rise in open interest may not be a major factor influencing SHIB’s price. Therefore, a crash in open interest may not necessarily lead to a crash in price. However, SHIB closely follows the recovery of Bitcoin, so a decline in BTC price could have an impact on SHIB’s price.
Hot Take: Implications for SHIB Price
The muted rise in Shiba Inu’s open interest compared to other cryptocurrencies raises questions about the altcoin’s price trajectory. While a decline in open interest may not directly result in a price crash for SHIB, its close correlation with Bitcoin suggests that any downward movement in BTC could affect SHIB’s price negatively. As investors continue to monitor the fluctuations in open interest and price, it remains to be seen how SHIB will perform in the coming months. The market dynamics and the influence of Bitcoin on altcoins like SHIB will play a crucial role in shaping its future.
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