Shiba Inu [SHIB] was being traded at $0.000019 as of the latest data, following a modest 4.8% increase over a 24-hour period. These gains are a result of several altcoins mirroring the performance of Bitcoin [BTC], which is rapidly nearing its previous all-time highs.
The recent surge in value coincided with a notable rise in the amount of funds flowing into derivative exchanges. On the 29th of October, SHIB’s net flows into derivative exchanges peaked at 563 billion, representing a three-month high.
Unlike what is observed in spot exchanges, where increased inflows typically indicate selling pressure, inflows to derivative exchanges are often a sign of escalating leverage being utilized.
This data indicates that traders in the derivatives market may be initiating new positions on SHIB. According to Coinglass, these inflows coincide with a surge in open interest and funding rates, suggesting that traders are increasingly taking long positions.
The uptick in long positions generally reflects a positive sentiment. Furthermore, technical analysis indicators point towards a potential for further growth in SHIB’s value.
Positive Indicators for SHIB
Analysis of Shiba Inu’s one-day chart reveals numerous positive signs following the crossover of the 50-day Simple Moving Average (SMA) above the 150-day SMA.
This crossover signals the strengthening of short-term bullish momentum, which could help sustain the upward trend.
In addition to the moving averages, technical indicators suggest that bullish traction is gaining momentum for SHIB. The Moving Average Convergence Divergence (MACD) line has converged with the signal line, indicating a weakening downtrend.
The MACD histogram bars are also diminishing and fading, indicating a decrease in selling pressure. If the MACD crosses above the signal line, a new buy signal may emerge, potentially leading to a 17% surge in SHIB prices up to the 1.618 Fibonacci level (0.0000223).
Increase in Active Addresses
An upsurge in the number of active addresses associated with SHIB further supports the optimistic outlook. Over a 24-hour period, daily active addresses jumped from 3,400 to a three-week high of 5,200, signaling heightened user engagement and increased demand for Shiba Inu.
In addition to the rise in daily active addresses, SHIB transaction volumes surged to 7.6 trillion tokens, marking a sevenfold increase within just three days according to IntotheBlock.
A sustained growth in active addresses and transaction volumes could bolster the upward trajectory of Shiba Inu. However, the longevity of this rally will hinge on market sentiment.
Data from Market Prophit indicates that public sentiment towards SHIB is optimistic, while sentiment among institutional investors leans towards a more cautious outlook.