SHIB Futures Open Interest Climbs to 7-Month Peak

Shiba Inu Derivatives Surge as Traders Rotate into Altcoins

Shiba Inu’s (SHIB) derivatives market is gaining traction as traders shift their focus from Bitcoin to altcoins, spurred by broader market momentum and Ethereum-led capital rotation.

Open interest in Binance’s 1000SHIB USDT-margined futures contracts has surged to 5.11 billion SHIB, the highest level since December, according to Coinglass. The 39% rise in July alone signals increasing appetite for leveraged exposure to SHIB, with traders seeking higher volatility opportunities amid Bitcoin’s relative consolidation.

These futures, offering up to 25x leverage, allow traders to control larger positions with smaller capital, intensifying both upside potential and downside risk. The influx of leveraged trades also raises the likelihood of sharp price moves and liquidation cascades.

SHIB Sees Sharp Price Swings, Builds Fresh Support

SHIB is up 38% so far this month, aligning with a broader altcoin rally. However, the last 24 hours saw notable volatility, as the token dipped 0.73% from $0.00001571 to $0.00001560 between 11:30 and 12:29 UTC on July 21. The heaviest selling occurred in a two-minute window from 12:01 to 12:03 UTC, sending the price down to $0.00001548 on volume exceeding 56 billion SHIB.

The pullback established a short-term support level around $0.00001546, followed by a recovery to $0.00001575, underpinned by a steady series of higher lows—a sign of strengthening bullish sentiment.

On-Chain and Market Indicators Show Bullish Underpinnings

Crypto market cap crosses $4 trillion, prompting increased demand for riskier assets like meme coins.
SHIB burn rate surged 3,615%, with over 100 million tokens destroyed in a single session.
Exchange reserves dropped to $1.14 billion, reflecting reduced sell-side pressure.
Intraday price range spanned $0.000015815 to $0.000015064 (~5% spread).
Trading volume topped 1.394 trillion SHIB during peak rally activity.
A consolidation pattern is forming with declining volume, indicating possible accumulation.
Key support now stands near $0.000015465, with resistance at $0.000015815.

As SHIB continues to gain traction in both spot and derivatives markets, investors are watching for a decisive break above resistance to confirm further upside.