-
The negative funding and higher price movement might send SHIB to $0.000030.
Indications from the volume suggested a possible consolidation phase.
After seeing a positive trend earlier, Shiba Inu’s (SHIB) funding rate turned positive again on April 28th. Funding rate represents the cost of holding an open perpetual position. When it’s green, longs pay shorts a fee and overall sentiment among traders is positive. Conversely, negative funding implies that more traders are betting on a price decrease for SHIB.
On April 28th, the Funding Rate for Shiba Inu‘s [SHIB] aggregated funding rate shifted back into the positive territory after previously registering a favorable reading earlier in that week. The Funding Rate signifies the expense incurred for maintaining an open perpetual swap position.
If the metric indicates a green reading, it means short sellers are being charged fees by long position holders, reflecting a generally optimistic outlook among traders.
From my perspective as an analyst, when funding is negative for a particular cryptocurrency, it signifies that a larger number of traders hold bearish positions, anticipating its price to decline.
SHIB may not back the crowd
As a researcher studying market trends, I’ve observed that price doesn’t necessarily dictate trader sentiment for every asset, including Shiba Inu (SHIB). Recently, within the past 24 hours, SHIB’s price has shown an upward trend.
As a crypto investor, I’ve noticed that the funding rate has turned more bearish as the price of Shibaswap (SHIB) inched up slightly. This suggests that perp sellers might be taking profits or reducing their positions, which could weaken the ongoing price rally. However, buyers on the spot market appear to be quite aggressive, and this could potentially lead to a further price surge for SHIB.
The funding rate signal alone may not fully explain the cryptocurrency price movements. To gain a more comprehensive understanding, AMBCrypto examined additional metrics.
This occasion, we pondered over examining the exchange transaction pattern. At present, the Shiba Inu token withdrawal amount from exchanges totalled 723.48 million. This figure signifies the quantity of tokens transferred out from exchanges.
As a researcher studying exchange flows, I would explain it this way: The outflow from our analysis amounted to approximately 646.76 million in tokens. This represents the amount sent from various sources to exchanges. Typically, these transactions are initiated with the intention to sell. Consequently, such actions can contribute to downward pressure on prices.
When comparing the two metrics, it’s clear that the majority of participants leaned towards a bullish outlook.
In other words, if bears continue to hold their ground, there’s a strong possibility that Shib’s price will drop back down to around $0.000030 in the near future.
Price chooses end-to-end movement
Although the forecast may not indicate it, traders should remain vigilant regarding Shib’s trading volume. The volume signifies the level of investor activity for this cryptocurrency. An uptick in volume suggests that there is significant buying and selling happening among participants.
Alternatively, a decrease in trading volume signifies waning enthusiasm for exchanging the token. Moreover, volume plays a significant role in shaping price trends.
If the volume increases in tandem with the price, the uptrend for Shiba Inu could persist. However, contrary to this expectation, the current data indicates a decrease in Shiba Inu’s trading volume.
In simpler terms, a turn of events similar to the present could weaken the previously stated optimistic outlook, making it less valid.
Read Shiba Inu’s [SHIB] Price Prediction 2024-2025
Should the situation remain unchanged, Shib may enter a phase of price stability, with the token potentially trading within the range of $0.000024 to $0.000027 in the near future.
As a researcher studying the Shiba Inu (SHIB) cryptocurrency market trends, I’ve noticed an increase in trading volume. Yet, it is essential to keep in mind that this surge in volume does not necessarily imply a bullish trend if the price remains stagnant. Consequently, there is a possibility that SHIB may revisit its previous support level of $0.000030.
Read More
- BCH PREDICTION. BCH cryptocurrency
- TRU PREDICTION. TRU cryptocurrency
- UNI PREDICTION. UNI cryptocurrency
- RIF PREDICTION. RIF cryptocurrency
- GFI PREDICTION. GFI cryptocurrency
- WRX PREDICTION. WRX cryptocurrency
- CTXC PREDICTION. CTXC cryptocurrency
- EUR HUF PREDICTION
- FLOKI PREDICTION. FLOKI cryptocurrency
- AMP PREDICTION. AMP cryptocurrency
2024-04-28 17:11