Shiba inu's (SHIB) derivative market is heating up as traders shift their focus from bitcoin to the broader cryptocurrency market.
The number of open positions in the Binance-listed 1000SHIB futures contract has risen to 5.11 billion SHIB, the highest since early December, according to data source Coinglass. The tally has increased by over 39% this month, indicating a substantial influx of money into derivatives.
These USDT-margined futures are sized at 1,000 SHIB per contract with up to 25 times leverage, allowing traders to control a significantly bigger position with relatively small capital.
The growing demand for leverage means potential for heightened price volatility and large liquidations, or forced closure of leveraged bets, by exchanges.
SHIB's price has rallied 38% this month, with notable two-way volatility in the past 24 hours. The cryptocurrency saw notable price volatility throughout the 60-minute trading window from July 21, 11:30 to 12:29, retreating from $0.00001571 to $0.00001560, marking a 0.73% decline, with the most intensive selling activity concentrated between 12:01-12:03 as the token dropped from $0.00001556 to $0.00001548 amid heightened volume surpassing 56 billion tokens.
Following this decisive correction, which formed a fresh support zone around $0.00001546, SHIB exhibited strong recovery characteristics through successive higher lows, bouncing back to $0.00001575 as of writing.
Key AI insights
- The digital asset market achieves an unprecedented $4 trillion capitalization threshold as Ethereum's momentum catalyzes capital rotation from bitcoin toward higher-volatility altcoins, supporting meme tokens, including SHIB.
- SHIB token destruction rate surged 3,615% with more than 100 million tokens eliminated in a single session, while exchange inventories reach annual lows at $1.14 billion, indicating diminished selling pressure.
- Price range of $0.000000771 representing 5% spread between a maximum $0.000015815 and a minimum $0.000015064.
- Support level established around $0.000015460 with resistance near $0.000015815.
- Volume spike to 1.394 trillion tokens exceeded the 24-hour average during the initial rally phase.
- A consolidation pattern with diminishing volume activity suggests a potential accumulation phase.
- Recovery pattern through multiple higher lows indicates renewed buying interest.
- A sharp correction established a new support level around $0.000015465 before the recovery.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.
