Shiba Inu Crypto Pulls Off Impressive Weekend Rally Fueled By Robust Spot Positioning

Key Insights:

• Shiba Inu Crypto becomes the best-performing crypto in the top 50 this weekend after surging by around 39%.
• Shiba Inu recorded the highest daily spot inflow in months on Saturday.
• Modest open interest signals strong spot positioning, while a spike in negative funding rates suggests short-term retracement expectations.

Shiba Inu held on to the position of the biggest gainer among the top 50 cryptocurrencies this weekend. This was courtesy of an unexpected bullish outburst that saw it rally nearly 39% from its lowest price on Friday to its highest on Sunday.

For context, Shiba Inu Crypto traded as low as $0.00000421 on Friday. However, it surged as high as $0.00000583 on Sunday morning, reclaiming levels last seen in May.

Despite this impressive rally, Shiba Inu crypto price retreated considerably, signaling heavy profit-taking. It exchanged hands at $0.00000512 at press time.

SHIB was still the biggest gainer among the top coins despite the retreat. Moreover, this profit-taking may have also been triggered by the fact that it was overbought at the time of writing, according to the RSI indicator.

The Shiba Inu Crypto Rally Was Backed By Heavy Spot Liquidity Injection

Before assessing whether the meme coin can retain its recent gains, it is important to examine the key factors behind the rally. Analyst SHIBMortal observed heavy liquidity influx specifically from South Korean exchanges.

Most of the demand for the Shiba Inu crypto this weekend was observed on Saturday. Moreover, that demand was mostly observed in the spot market.

CoinGlass data revealed that SHIB crypto had over $5 million in positive net flows on Saturday alone. This was the largest daily spot inflow observed in over 9 months.

This spike in inflows occurred while the meme coin was in a consolidation phase after months of sustained downside. In fact, the Shiba Inu crypto price has been hovering near its historic lows, with signs of accumulation observed recently.

SHIB’s RSI indicator previously signaled rising bullish momentum. The liquidity injection on Saturday was the rocket fuel that the meme coin needed for such an explosive performance without bearish friction.

Is SHIB Price Bound for More Recovery?

Short-term price surges are usually followed by some short-term retracement, especially during periods of elevated uncertainty. So far, market sentiment has not improved to support more upside.

Nevertheless, other market factors do come into play when determining the next potential outcome. For example, the level of activity in the derivatives market compared to the spot market.

In Shiba Inu Crypto’s case, the recent rally was backed by robust spot positioning. CryptoQuant revealed that the rally was supported by healthy accumulation, judging by the surge in active addresses over the last few days.

There were about 1,630 active addresses on 19 July, but that number has since surged to over 3,150 addresses as of 25 July. Almost double within a few days.

The derivatives segment also demonstrated significant interest among traders. For example, SHIB open interest surged from around $30 million on 20 July to about $48 million at press time.

A relatively modest gain, but derivatives volumes lagged on Saturday, confirming that spot activity was prominent. However, the last 24 hours saw a 2,000% plus surge in derivatives, accompanied by a spike in negative funding rates.

The surge in negative funding rates suggests that derivatives traders anticipated a retracement. However, the spot accumulation could also indicate that traders might be positioning for more recovery in the coming months.

Note:
Information shared in this news post is for informative purpose only. Readers should consult a licensed financial advisor or other qualified professional before making any investment decisions

The post Shiba Inu Crypto Pulls Off Impressive Weekend Rally Fueled By Robust Spot Positioning appeared first on The Coin Republic.