Shiba Inu (SHIB) Price Outperforms DOGE as Funding Rate Spikes 240%

Key Insights:

• Shiba Inu (SHIB) opening price for Saturday, Feb 17 stood at $0.00001, up 14% within the 7-day timeframe. 
• Shiba Inu’s growth performance in over the last 10 trading days has exceeded Dogecoin’s.
• Derivatives market data shows that bullish speculative traders have increased leveraged bets on SHIB over the past week

Shiba Inu (SHIB) price breached the $0.00001 milestone on Feb 17 for the first time in over a month. Critical market analysis reveals how a positive shift in speculative traders activity in the past week has propelled SHIB price performance above Dogecoin (DOGE).

Can the bullish Shiba Inu whales keep up the buying pressure to force another leg-up toward $0.00002 for the first time in two years? 

Shiba Inu Price Performance has Overtaken Dogecoin in the Past Week 

Shiba Inu price started February 2024 on the backfoot, while rival mega-cap memecions, BONK and PEPE took center stage. But in the past week, Shiba Inu has made giant strides to catch up with the pack. 

SHIB price has gained 15.2% in the just concluded trading week between Feb 10 and Feb 17.

Meanwhile, the comparison chart below shows that DOGE price has only managed 11.9% during that period. 

In effect Shiba Inu price growth in the past week has surpassed Dogecoin’s significantly.

A closer look into the markets trend shows that derivative traders’ lopsided bullish bets on SHIB is a major factor that has propelled Shiba Inu price ahead of Dogecoin. 

SHIB Funding Rates Spike 240% as Traders Flipped Bullish

With over $400 million increase in SHIB market cap, Shiba Inu has evidently received significant capital inflows in the spot markets. However, the activity of SHIB traders in the derivatives markets provides a deeper insight into what to expect in the coming days.

Santiment’s funding rate metric monitors fees paid by futures traders to keep their positons open.

As seen in the chart below, SHIB funding rate has been on a meteoric rise this week, increasing from 0.009% on Feb. 10 to 0.033% at press time on Feb 17.

Positive funding rates means that long position holders are paying significantly higher fees to short traders in hopes of booking outsized profits when prices move upwards. 

Hence, the rising SHIB Funding Rates suggest that, speculative traders were leaning predominantly bullish in the just concluded trading week. 

Shiba Inu Price Forecast: Can the $0.000009 support hold

After reclaiming the $0.00001 territory, SHIB price has hit a significant sell-wall. But after scoring 15% gains in the past week, majority of new entrants sitting on sizeable profits may be unwilling to sell in the short-term.

Hence, as depicted by the Bollinger band technical indicator, the bulls are likely to regroup at the $0.000092 20-day SMA price support level.

If this support level holds, it could serve as a springboard for the bulls to stage a decisive  SHIB price breakout toward $0.00002 in the coming weeks.

On the downside, SHIB could face a prolonged bearish downswing if it loses the $0.000009 support. But with funding rates at significantly high levels, its shows that majority of SHIB traders are currently willing to pay more to cover their positions rather than sell.