Shiba Inu (SHIB) Breaks 58-Day Box Range…But Derivatives Market Sentiment is Cold

▲ Shiba Inu (SHIB) ©

Shiba Inu has successfully broken out of its 58-day box range, but the sentiment in the derivatives market remains cold. With an increase in short-selling bets and negative funding rates, the short-term upward momentum appears limited.

According to investment media FXStreet on May 12 (local time), Shiba Inu (SHIB) has shown a slight decline near $0.0000065 after breaking above the upper boundary of its sideways trading range last week. The market is watching to see if SHIB can continue its breakout trend or re-enter a correction phase.

Derivatives indicators are sending bearish signals in the short term. According to CoinGlass, the SHIB long-short ratio has fallen to 0.49, approaching its lowest level in the past month. This means there are more bearish bets than bullish positions. The funding rate for SHIB also turned negative at -0.0061%, strengthening the sentiment of short-selling dominance, the media analyzed.

However, the spot chart's movement itself is still assessed as positive. SHIB is continuing to trade after confirming support around the 100-day exponential moving average (EMA) at $0.0000064. In particular, breaking above the 58-day box range's upper boundary of $0.0000063 last week was interpreted as a technically significant signal.

Technical indicators also do not show a complete bearish reversal. The Relative Strength Index (RSI) remains above the baseline of 50 at 61, suggesting a bullish trend, and the Moving Average Convergence Divergence (MACD) also maintains a green histogram, indicating the possibility of continued upward momentum. The media analyzed that if SHIB maintains above the 100-day EMA, it could see further gains to the weekly resistance level of $0.0000068.

Conversely, if a correction occurs, the previous upper boundary of the box range, $0.0000063, is expected to act as a key support level. Market observers suggest that SHIB's next direction may be determined amidst the conflict between bearish sentiment in the derivatives market and the bullish structure of the spot chart.

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