Shiba Inu Recovers 64% Monthly Volatility High: Will Bulls Keep SHIB Price Near Resistance?
Amid the recent market correction that saw Ethereum and Bitcoin rebound after losing less than 5% of their value in the past 24 hours, Shiba Inu has notably bucked the trend, rising 12% in price over the past two days. This upward movement is particularly interesting because it is accompanied by a significant spike in the magnitude of burn rates and a high rise in monthly fluctuations.
SHIB open interest increases rapidly in 4 months
Open interest for Shiba Inus increased significantly in August since the current bull market began. However, in the following months, open interest for Shiba Inu decreased noticeably, despite overall OI increases for other assets. However, SHIB has now regained momentum with open interest surging again, hitting a four-month high of $27 million.
However, Shiba Inu’s market behavior is unique in that, unlike Bitcoin and Dogecoin, its price is not closely tied to open interest. Despite historically low open interest, the price of SHIB has remained stable, suggesting changes in open interest may not have a significant impact on the price. However, SHIB still follows Bitcoin’s trend closely, indicating that a surge in Bitcoin’s value could have a significant impact on SHIB’s price.
According to information from IntoTheBlock, Shiba Inus have reached a peak monthly volatility of 64%. This increase will cause SHIB’s value to increase by 20% over the course of a month. Increasing volatility could potentially attract more traders and drive open interest. These developments could lead to big market moves, especially if SHIB breaks through its current resistance levels.
Currently, the market is showing an upward trend, with the long/short ratio trading at 1.1673. This indicates that long positions are continuing to increase, with 54% of them expecting prices to rise.
What’s next for SHIB pricing?
Shiba Inu recently faced resistance at $0.0000097 as buyers liquidated their holdings to lock in profits. However, they are now strongly defending a decline below $0.0000087, suggesting an accumulation zone. At the time of writing, SHIB price is trading at $0.0000094, a surge of over 4.9% from yesterday’s exchange rate.
The upward slope of both moving averages and the RSI being close to the overbought zone of 63 mean that SHIB price is more likely to continue its upward trend. SHIB price is poised to rebound potentially towards the $0.0000097 point. However, strong resistance is expected in the $0.00001 area.
On the downside, the 20-day EMA of $0.0000089 is an important level to monitor. A break and close below this level would indicate bullish profit-taking and could potentially lead to a drop to $0.0000075.
With the Bitcoin price currently hovering above $42,000, it is likely that SHIB price will gain momentum and potentially break through key resistance levels.