SHIB increased long-term transactions, short-term decline still sees risk

Shiba Inu (SHIB) futures traders remained optimistic despite the strength of the Mem coin last month.

A review of the coin's price action on the 3-day chart shows that it has been trending in a parallel channel pattern since April 12, with resistance at $0.000027 and support at $0.00002.

Shiba Inu long traders are rumored to be in favor of the coin.

Open interest in SHIB futures has seen an upward trend since the beginning of the month. At the time of writing, meme coin futures open interest was $89 million, the highest level since April 4th.

An asset's futures open interest refers to the total number of futures contracts that have not yet been closed or completed. When it increases, it indicates an increase in the number of traders entering the asset futures market.

SHIB's funding rate has maintained a positive value, confirming that rising open interest is a bullish sign.

Read more: How to buy a Shiba Inu (SHIB) and everything you need to know

Funding rates are used in perpetual futures contracts to ensure that the contract price stays close to the spot price. When their prices are positive, they indicate high demand for long positions.

An increase in asset futures open interest with a positive funding rate indicates an increase in demand for long positions.

SHIB Price Prediction: Mem Coin price from…

As SHIB futures traders open positions in support of a rally, readings from the price charts suggest a possible short-term decline.

First, the Parabolic SAR indicator points above the price during the price period. They have been sitting this way since April 3rd.

The indicator measures the asset's price direction and trend reversal. When the points appear above the value of the asset, it indicates that the current trend is down and may continue if the sentiment fails to improve.

Also, the coin's Money Flow Index (MFI) rested below the neutral zone of 50 at press time. 44.62 SHIB's MFI shows that the selling pressure is more than the inventory among the traders.

This indicator measures the flow of money into and out of the asset over a period of time. The values ​​are between 0 and 100. A reading below 50 indicates that, on average, there is a downward price movement accompanied by higher trading volume than an upward price movement.

If this trend continues, the price of the coin may drop from the $0.000026 range and settle at $0.000024.

However, if this turns out to be incorrect, the value of SHIB is expected to rise to $0.00003.