- SHIB’s consolation is likely to continue but traders have positioned themselves for a change in volatility.
- There was a lack of significant trading activity, resulting in minimal liquidation.
After a distressed week of consolidation, shiba inus [SHIB] remained one of the tokens that traders kept their eyes on. However, last week’s performance was not the catalyst that propelled the stock. On the contrary, forward open interest on SHIB has increased since March 14.
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A high open interest implies that a large number of traders have taken active positions in a derivative contract. At press time, a total of 2.46 trillion SHIB the contracts have been openedaccording to data from Coinglass.
The drop in open interest signifies that the market is liquidating and implies that the prevailing price trend was coming to an end. In this case, the flow of money in the futures or options contracts slows down.
As for the situation at the time of writing, this means that the market could be safe from a short silence and a sell-off. But it happened at a time when volatility was low. Therefore, SHIB’s likelihood of constant price fluctuations was minimal.
Recently, SHIB has been retest a resistor which puts the bulls at risk of loss. But figures from the derivatives information tracker revealed that only $37,580 has been liquidated in the past 24 hours.
Liquidation describes a case where open long or short positions have been forcibly closed due to the inability to meet margin conditions on a bullish or bearish bet.
THE SHIB state implies that most contracts opened by traders have not been triggered. And that was largely due to price drifting around the same region over the past few days.
Bears hide for command
At the time of writing, the SHIB price action was still the same as it was moving sideways. According CoinMarketCap, the symbolic value rose slightly, with its volume increasing by 6% in the last 24 hours. The increase in volume meant that the number of tokens involved in transactions was higher than the day before.
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At the same time, the contraction in volatility, as it has been since March 20, remained unchanged. However, the Bollinger Bands (BB) indications revealed that the SHIB was neither overbought nor oversold.
This confirmed the idea that an important change direction was not to come. Therefore, traders may have to wait a bit longer before expecting gains or losses on positions held.
Regarding its momentum, the Awesome Oscillator (AO) indicated that SHIB might swing to the bearish side. Although the AO was above zero, the display of red bars means that the current value could be lower.