Shiba Inu’s Trading Volume Surge Shows Bullish Momentum Despite Market Decline

TLDR

Table of Contents

Shiba Inu’s spot trading volume surges 154% on Kraken over seven days.
Coinbase plans to launch Shiba Inu futures, boosting adoption and liquidity.
Shiba Inu’s price rises by almost 7% despite Bitcoin’s volatile movements.
A $35 million whale transfer and 45 billion SHIB moved off exchanges show strong accumulation.

Shiba Inu is experiencing a major surge in trading volume, with a remarkable 154% increase on Kraken over the past week. This spike is also seen across major exchanges like Binance and Gemini, signaling growing interest in the second-largest meme coin by market cap. Despite the broader crypto market’s downturn, Shiba Inu’s bullish momentum and institutional developments hint at a potential shift in sentiment toward the token.

Shiba Inu’s Volume Surge

Shiba Inu (SHIB), the second-largest meme coin by market capitalization, has recently experienced a notable surge in spot trading activity. According to data from CoinGlass, the trading volume for SHIB USD has increased by 154% on Kraken over the past seven days.

This jump in activity is also evident on other major exchanges, such as Binance, Bybit, OKX, and Gemini. This surge in trading volume suggests that spot buyers may be stepping in to support SHIB’s price at a critical point, despite the overall downturn in the broader crypto market.

CoinMarketCap’s data indicates that SHIB is one of the few altcoins in the green during this period, with a rise of nearly 7%. This performance stands out against Bitcoin’s volatility, which has been affecting the broader market. The surge in volume is helping to create a bullish outlook for SHIB as it navigates through these challenging market conditions.

Leverage Traders and Market Outlook

Despite the positive surge in spot trading, Shiba Inu’s derivatives market paints a mixed picture. According to CoinGlass, the long/short ratio for SHIB is currently above 1, which suggests that most leverage traders are betting on a price increase. However, there is a decline in derivatives volume, which has fallen by over 10%, and open interest has dropped by nearly 4%. This decrease in leverage trading could indicate that there is less confidence in the meme coin’s future price performance, and some traders are cautious.

Still, the overall market sentiment remains relatively optimistic, especially with the Federal Reserve’s upcoming meeting. Many analysts expect the Fed to cut interest rates, potentially injecting more liquidity into the crypto market. This could have a positive effect on altcoins like SHIB, as they tend to perform well in a favorable liquidity environment.

Whale Activity and Institutional Moves

Shiba Inu’s community is also seeing signs of strong support. A community member known as Shibizens reported that more than 45 billion SHIB have been moved off exchanges in recent days. This indicates that many holders are accumulating the coin, which could be a positive sign for SHIB’s long-term price stability.

Additionally, there was a notable $35 million whale transfer into a private wallet, suggesting that major investors are bullish on SHIB’s prospects. Shiba Inu is also making strides in increasing its institutional presence. Coinbase, one of the largest crypto exchanges, is set to launch Shiba Inu futures on December 12.

This will allow both retail and institutional investors to participate in SHIB trading in a new way, which may further drive adoption and liquidity. Furthermore, the New York Stock Exchange’s Arca has filed a 19b-4 form for T. Rowe’s Shiba Inu ETF, bringing it one step closer to a public launch. These institutional moves could help broaden SHIB’s exposure to mainstream investors.

Shiba Inu’s Network Upgrades

Shiba Inu is also focusing on technological improvements, particularly through its Shibarium network. Recent updates to the network include an RPC upgrade and the planned rollout of a privacy upgrade using encrypted technology. The privacy upgrade is expected to be fully implemented by next year, which could enhance security and user privacy within the Shiba Inu ecosystem.

These network upgrades are part of the broader efforts to make Shiba Inu more functional and attractive to both developers and investors. With the increased adoption of Shiba Inu futures and the upcoming privacy upgrades, SHIB could continue to see strong demand from various sectors within the crypto community.