Dogecoin, Shiba Inu and Bonk Open Interest spikes, outshining Bitcoin
- Dogecoin, Shiba Inu and Bonk have noted spikes in their open interest in the past 24 hours based on Coinglass data.
- Higher open interest in meme coins reveals that traders are leaning towards riskier bets in the crypto market.
- DOGE, SHIB and BONK yielded between 5% and 17% weekly gains for holders.
Meme coins in the crypto ecosystem, Dogecoin (DOGE), Shiba Inu (SHIB) and Bonk (BONK) noted spikes in their open interest in the 24-hour period between November 6 and 7. This metric indicates that the risk appetite of traders has increased as meme coins are typically considered riskier bets than large market capitalization assets like Bitcoin and Ethereum.
Also read: Bitcoin price rally to $48,000 likely with BTC uptrend gaining strength in bull market
Open interest in meme coins rises, market sentiment shifts
Open interest, a metric that measures the number of open positions, both long and short, on a derivative exchange’s trade pairs of an asset is on the rise. Rising open interest signals influx of new or additional capital in the market.
To decipher the rise in open interest, it is important to note that traders can buy and sell to open and close positions. Typically, rising OI does not mean a rise in price for the asset. However, it does point towards increasing volatility. When combined with the phase of the market cycle and the price trend of the asset, it helps identify trade opportunities.
Open interest in SHIB, DOGE and BONK increased by 7.99%, 5.70% and 8.17%, respectively, based on Coinglass data.
Typically, every crypto market cycle, after volatility in Bitcoin and Ethereum prices, capital rotates to DeFi, Layer-1 blockchain tokens and meme coins. In line with typical market trend, traders’ risk appetite has increased and meme coins are gearing up for an influx of volatility.
SHIB, DOGE and BONK prices yielded between 5% and 17% gains over the past week, therefore, the direction of the price trend is upward.
SHIB, DOGE and BONK price: What to expect
Technical analyst on X (formerly Twitter), CryptoKaleo, recently evaluated the Shiba Inu price chart and presented a bullish conclusion for the asset. The analyst believes that once SHIB price breaches its August 2023 high of $0.00001135, the meme coin is ready to target the Fair Value Gap above $0.00002000.
SHIB/USD one-day price chart
Analyzing the DOGE/USDT price chart, Kaleo explains that the meme coin has broken out of its multi-month downtrend and is ready to climb towards the target of $0.0840, as seen in the price chart below.
DOGE/USDT one-hour price chart
BONK price recently broke out of its multi-month downtrend with a close above $0.0000007620. The meme coin printed three consecutive green candles and the price is currently above its three long-term Exponential Moving Averages (EMAs) at 10, 50 and 200-day at $0.0000007094, $0.0000004225 and $0.0000004716, respectively. If BONK sustains its bullish momentum, the meme coin could print 18% gains and hit the resistance at $0.0000009570, a level that acted as resistance since April 2023.
BONKUSD one-day price chart on TradingView
The $0.0000007421 level could act as support for BONK, in the event of a decline. BONK’s bullish thesis is likely to be invalidated if BONK notes a daily close below $0.0000007421.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
