306% Drop in SHIB Futures Flow: Are Traders Cautious?
TL;DR
Shiba Inu has seen a 306% drop in futures flow in the last 24 hours, with inflows at $3.82 million and outflows at $4.25 million. This negative difference of $431,100 suggests traders are reassessing their risk strategies.
Key points
- 306% decline in Shiba Inu futures flow
- Inflows at $3.82 million and outflows at $4.25 million
- Negative difference of $431,100 indicates caution among traders
Data from CoinGlass shows that Shiba Inu has experienced a 306% decline in futures flow in the past 24 hours. The inflow of Shiba Inu futures was $3.82 million while the outflow was $4.25 million.
Futures inflow estimates the net active buying and selling volume for crypto derivatives while futures outflow indicates the funds leaving derivatives exchange wallets (margin and futures accounts), possibly indicating that traders are removing the margin collateral. When the outflows are higher than the inflows, it may indicate that more capital is leaving the derivatives markets. This could suggest less leverage, profit taking, or traders moving money to cold storage.
In the case of Shiba Inu, the futures outflow and inflow difference was negative, amounting to $431,100, which is a 306.58% drop.
Traders reassess risk strategy
At the time of writing, SHIB was down 0.4% in the last 24 hours to $0.00000561 as most large caps traded flat within this timeframe. This might point to waning appetite for broad large-cap crypto exposure.
A few crypto assets are trading higher while the majority remain flat. This suggests that capital is being redeployed strategically rather than exiting the market altogether.
Shiba Inu rebounded following Sunday's drop to a low of $0.00000549, albeit the price remains in a range since mid-May. Price declined from a high of $0.00000669 on May 11. Bulls' attempt to sustain a rebound failed as SHIB fell further towards the weekend.
If the price recovers from current levels, Shiba Inu will eye a return above the daily MA 50 (moving average) at $0.000006 and $0.0000066. On the other hand, if the declines continue, SHIB might test support ahead at $0.0000052 and then $0.000005.
However, crypto sentiment seems to be improving. The Fear and Greed Index according to CoinMarketCap is at 40 (neutral), up from 39 (fear) the day before.
Q&A
What caused the 306% drop in Shiba Inu futures flow?
The drop in Shiba Inu futures flow is attributed to higher outflows than inflows, indicating traders may be removing margin collateral and reassessing their risk strategies.
What are the current inflow and outflow figures for Shiba Inu futures?
Currently, Shiba Inu futures inflows are at $3.82 million, while outflows are at $4.25 million, resulting in a negative difference of $431,100.
How does the decline in Shiba Inu futures flow affect traders?
The decline in futures flow may indicate that traders are taking profits, reducing leverage, or moving funds to cold storage, reflecting a cautious approach to trading.
