Shiba Inu [SHIB] is back in the spotlight again, but not everyone seems convinced that it’s with good reason.
Here’s why.
SHIB social dominance is recovering again
Per data from Santiment, SHIB’s Social Dominance has been rising up since August 16. The metric was at 0.016% at the time of writing.
This is important, because traders and investors are paying closer attention to the token. In SHIB’s case, this is after a prolonged quiet spell.
Source: SantimentIt’s also clear that social activity has been volatile in recent weeks, with several visible spikes. So there is a possibility that the current recovery in buzz may not hold.
Only time will tell.
Falling OI keeps traders on their toes
SHIB’s Open interest [OI] has been going lower, and was near 30.1 million at press time. That’s a big fall from levels above 34 million earlier, and means there’s fewer leveraged positions in the market.
Source: CoinalyzeThe increased attention should ideally increase new positions, so this is peculiar.
Aggregated Funding Rate was still positive though, so traders holding long positions still have a small edge. However, when funding is positive along with falling open interest, that’s just an indicator of slight optimism.
Source: TradingViewAt the time of writing, SHIB was near $0.00000446, and its RSI was at around 46.3. Since the RSI was below the neutral 50 level, there’s not enough buying happening. DMI readings were also closely grouped, so neither buyers nor sellers have a particularly strong advantage.
So, SHIB might have the attention, but the confidence is still missing.
For a bullish case, traders would want to see social buzz translate into a rise in open interest and buying. Until then, this increase in buzz may help keep SHIB on traders’ radar, but the market itself will lie in wait.
Final Summary
- Shiba Inu social dominance is recovering, but OI has fallen.
- Traders aren’t aggressively positioning despite positive funding rates.
