Shiba Inu: Buying Pressure Dominates Market...Major Shift from Short to Long

▲ Shiba Inu (SHIB)

Shiba Inu (SHIB) is showing strong upward momentum with both price increases and an increase in open interest. An analysis suggests that buying pressure is driving the market, as new leveraged positions have increased in the derivatives market, and net positions have shifted from a short-dominant to a long-dominant stance.

CryptoBasic reported on May 11 (local time) that bullish signals are growing in the Shiba Inu derivatives market, citing analysis from market analyst CW. According to the article, Shiba Inu's price recently rose by 7% over several days, recovering the $0.0000066 level. Since May 10, both the lows and highs have been rising, indicating that buyers have maintained market dominance.

Shiba Inu's price steadily rose from around $0.00000615, and between May 10 and May 11, it quickly jumped from around $0.00000632 to above $0.00000660. Trading volume also increased during the same period, and recent candles were interpreted as movements showing strong buying pressure. CW assessed that Shiba Inu's upward momentum is growing explosively, and buying pressure currently dominates the market.

The increase in open interest in the derivatives market also supported the bullish trend. According to the article, Shiba Inu's open interest increased from slightly over 5 billion SHIB on May 5 to over 6 billion SHIB at the time of reporting. An increase in open interest alongside a price rise indicates an influx of new positions rather than the liquidation of existing ones. CryptoBasic explained that rallies accompanied by new positions tend to last longer than gains solely driven by short covering.

The net position indicator also showed a change in investor sentiment. A week ago, the net position was approximately minus 200 million SHIB, meaning there were more short positions. However, from May 6, the net position began to rise and turned positive three days later. At the time of reporting, net long positions had grown to over 400 million SHIB, indicating a complete shift from bearish to bullish positions.

However, increased leverage was also pointed out as a factor that simultaneously increases volatility risk. If Shiba Inu maintains the recent breakout zone between $0.00000665 and $0.00000670, buyers may attempt further upside. Conversely, if the price fails to rise further while open interest remains above 6 billion SHIB, excessive liquidation of long positions could occur, leading to a sharp decline, according to the analysis.

Shiba Inu is forming a strong upward structure with simultaneous price increases, rising trading volume, expanding open interest, and a shift to net long positions. However, as leveraged positions have rapidly accumulated, a structure where sharp liquidation volatility could occur if the uptrend slows down has also formed.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*