Shiba Inu’s Futures flow drops 306% as Spot holders buy 419B SHIB: Who wins?
The outcome of the contest between derivative and Spot traders may shape SHIB's near-term price action outlook.
Shiba Inu [SHIB] is down by around 2% in the last 24 hours. The market is shifting, but derivative and Spot traders are not on the same script. One group is reducing its exposure while the other is adding capital.
SHIB traders reduce leverage exposure in Futures
As per CoinGlass data, Shiba Inu Futures demand collapsed by more than 306% in capital inflows over the past 24-hour period on the 25th of May.
In particular, SHIB Futures inflows reached $3.82 million, while outflows climbed to $4.25 million. This resulted in a net inflow of negative $430K.
The OI-Weighted Funding Rate turned red during this period. It dropped from positive 0.0080% to negative 0.0106%, suggesting that bears were paying bulls to keep their positions open.
The volume was also red on different exchanges, with most selling occurring on LBank for $26.43 million. BingX, OKX, and KuCoin followed with $24.55 million, $7.80 million, and $1.96 million, respectively.
This negative flow suggested derivative traders were reducing leverage exposure or taking profits as the market momentum weakened.
Contrast – Spot SHIB holders accumulate
On the contrary, the Spot traders were accumulating SHIB tokens. Close to 490 billion SHIB tokens left trading platforms, with exchange supply falling. This signaled increased movement of self-custody wallets.
From the on-chain data on Etherscan, millions of tokens were leaving Coinbase, Binance, and Coinone. The largest withdrawal within the hour of writing was from Coinbase, totaling well over 318 million SHIB tokens.
The Spot volume on multiple exchanges was positive, with millions of capital transacting. They included OKX, Bybit, Bitget, Coinbase, and Kraken.
The trend suggested large holders were reducing immediate sell pressure despite the ongoing downtrend. This data showed derivative and Spot traders were battling for control.
Who wins between derivative and spot traders?
The price action of SHIB has continued to range since February, potentially due to a battle between traders.
Shiba Inu’s prices are approaching the lower support level of the sideways market. The sellers have reduced momentum, as seen in the MACD bars. However, the Price Volume Trend has been flat since mid-February.
If Spot buys continue to rise, SHIB prices may hold above $0.00000526. Such an effect would be amplified if demand in the Futures market returned.
Conversely, if derivative traders continue reducing leverage exposure, the rebound may be delayed. Altogether, the outcome of the contest between these two types of traders may shape SHIB’s trajectory.
Final Summary
- Shiba Inu Futures demand crashed by 306%, while Spot holders withdrew 490 billion tokens from exchanges.
- SHIB price was ranging between $0.0000056 and $0.00000677 due to battles of control between derivative and spot traders.
