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Shiba Inu, Dogecoin Jump as Risk-On Behavior Returns to Crypto Markets
Futures tracking the two tokens saw over $25 million in liquidations in the past 24 hours.
Updated May 11, 2023, 5:24 p.m. Published Aug 15, 2022, 7:50 a.m.
Meme tokens shiba inu (SHIB) and dogecoin (DOGE) gained over 15% in the past 24 hours as risk-on behavior returned to crypto markets.
The rally came as ether (ETH) broke the $2,000 level on Sunday night ahead of the network’s Merge event expected in September. Bitcoin (BTC) rose to over $25,000 for the first time since June.
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SHIB rose as much as 30%, while DOGE gained 15%, before a price reversal in European morning hours as investors took profits. DOGE entered the top ten cryptocurrencies by market capitalization with a total valuation of just over $10 billion, ahead of Polkadot’s DOT token.
Price charts show SHIB saw resistance at the $0.00001744 mark, where it has previously seen price reversals. Selling pressure could see prices drop to Saturday's $0.00001277 level, where the tokens previously had resistance.
The gains could be attributed to irrational exuberance as no notable catalyst drove a rally in the two tokens at the time of writing. Futures tracking the two currencies saw over $25 million in liquidations, data shows, suggesting part of the rally was led by futures bets instead of spot.
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When adjusted for asset market capitalization SOL's relative futures volume looks better, K33 Research noted.
What to know:
- Solana's SOL futures began trading on the Chicago Mercantile Exchange (CME) on Monday, with a notional daily volume of $12.3 million and $7.8 million in open interest, significantly lower than the debuts of bitcoin (BTC) and ether (ETH) futures.
- Despite the seemingly lackluster debut, when adjusted to market value, SOL's first-day figures are more in line with BTC's and ETH's, according to K33 Research.
- Despite the bearish market conditions, the launch of CME SOL futures offers new ways for institutions to manage their exposure to the token, said Joshua Lim of FalconX.
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