Binance approving SHIB as a collateralized asset causes 10 billion in open interest as Shiba Inu price rises


  •  Binance exchange has approved the Shiba Inu token to serve as collateral, adding the meme coin to its Flexible and VIP Loan services.
  • The move sparked renewed optimism for the token, causing a 5% price surge alongside 10 billion in open interest positions.
  • With this many contracts still open, market participants will watch the market closely. 

Binance, the largest exchange by trading volume, has the ShibArmy elated after an announcement on Friday, August 4, clearing Shiba Inu token to serve as a collateralized asset alongside 22 other cryptocurrencies that will henceforth be loanable on its Flexible and VIP Loan services.

Also Read: Bitcoin price holds above $29,000 after below-expectations US NFP data

Binance gives Shiba Inu price a bullish fundamental

Binance Exchange’s list of loanable assets has increased, with 22 new tokens coming in. Among them Shiba Inu, whose investors are activated by the news as indicated by the striking surge in open interest over the last 24 hours.

SHIB Open Interest

Based on the chart above, the overall SHIB positions among traders hit 10 billion, with the open interest comprising both short and long positions. With this many contracts still open, market participants will watch the market closely as capital inflow continues streaming.

Shiba Inu price is already up 5% on the day, as of press time, with a 24-hour trading volume surge of 70%, the SHIB market has turned active with prospects for more gains. Historically, an increase in open interest coupled with a sustained price surge confirms an uptrend. 

Shib Inu price forecast amid renewed focus on the SHIB market

Shiba Inu (SHIB) is auctioning at $0.00000877 at the time of writing, flaunting a long green bar as bulls lead the market. Increased buyer momentum above current levels could see SHIB tag the 200-day Exponential Moving Average (EMA) at $0.00000927 after a substantial breach of the 100-day EMA hurdle at $0.00000840.

In a highly bullish case, the current uptrend could see the meme coin tag at the $0.00000987 resistance level. Such a move would constitute a 12% rise above current levels.

The Relative Strength Index (RSI) is moving north, suggesting rising momentum, with the Awesome Oscillators (AO) bolstering the stance as the histograms are in the positive zone.

SHIB/USDT 1-day chart

On the flip side, the rally could be interrupted by profit taking as long positions become liquidated just below the 200-day EMA at $0.00000927. The ensuing selling pressure could see Shiba Inu price fall back below the 100-day EMA at $0.00000840.

A decisive break below the confluence support between the 50-day EMA at $0.00000800 and the uptrend line could invalidate the bullish outlook.

Bitcoin, altcoins, stablecoins FAQs

What is Bitcoin?

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.

What are altcoins?

Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.

What are stablecoins?

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.

What is Bitcoin Dominance?

Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Price Forecast: Chances of pullback increase as miner selling ramps up

Bitcoin Price Forecast: Chances of pullback increase as miner selling ramps up

Bitcoin (BTC) price extends its decline for a second consecutive day on Wednesday, trading slightly down at around $87,600 after a 30% surge since November 5 pushed BTC to a new all-time high at $89,940.

More Bitcoin News
Crypto fraudster pleads guilty of taking part in $73 million laundering scheme

Crypto fraudster pleads guilty of taking part in $73 million laundering scheme

Daren Li, a Chinese citizen, pleaded guilty to conspiracy to help launder $73 million stolen in cryptocurrency scams. Li laundered funds using a network of shell companies and international bank accounts.

More Cryptocurrencies News
Cardano bulls show signs of exhaustion

Cardano bulls show signs of exhaustion

Cardano’s price is falling on Tuesday as it faces rejection around $0.624 and traders engaged in profit-taking following the recent rally. Technical indicators show signs of weakness in upward momentum as the RSI exits from the overbought territory.

More Cardano News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP could face pullbacks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP could face pullbacks

Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trade in the red on Tuesday following strong rallies since last week, driven by crypto-friendly candidate Donald Trump's election victory. 

More Cryptocurrencies News
Bitcoin: Further upside likely after hitting new all-time high

Bitcoin: Further upside likely after hitting new all-time high

Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP