Shiba Inu (SHIB) Crashes 10%—$1.8M in Bullish Bets Wiped Out in Market Shakeup

Memecoins giveth, and memecoins taketh away. Shiba Inu—the dog-themed crypto that turned ‘degenerate bets’ into fortunes—just liquidated $1.8M worth of leveraged longs as its price nosedived 10% overnight.

When the hype stalls…

Traders who piled into SHIB expecting another parabolic rally got a brutal reminder: crypto doesn’t do ‘slow corrections.’ The dip vaporized over-leveraged positions faster than a Tesla stock split announcement moves markets. Classic crypto ‘risk management’—meaning there wasn’t any.

Silver lining for diamond paws?

For every leveraged gambler rekt today, there’s a HODLer shrugging it off. SHIB’s ecosystem keeps expanding beyond its meme roots, and double-digit drops are practically a Tuesday in crypto. Just ask the ‘stablecoin’ traders from last cycle.

Bottom line: The market just handed SHIB bulls a bill for $1.8M. Pay up—or wait for the next ‘number go up’ miracle. (Spoiler: Wall Street still thinks we’re all clowns.)

TLDR

• SHIB price dropped 10% to $0.00001164 over one week, hitting two-month lows
• Long-short ratio fell to 0.9298, showing bearish trader sentiment in futures markets
• Over $1.8 million in bullish bets were liquidated since June 12, compared to less than $500,000 in shorts
• Key support levels at $0.00001167 and $0.00001061 are critical for preventing further decline
• Technical indicators show potential for bullish reversal if support holds above $0.00001100

Shiba Inu has faced selling pressure over the past week as its price declined 10% to $0.00001164. The meme coin reached two-month lows during this period, testing trader confidence.

The derivatives market shows clear signs of bearish sentiment. The long-short ratio in perpetual futures has dropped to 0.9298, indicating more traders are betting against SHIB than supporting it.

Liquidation data reveals the extent of bullish position closures. Since June 12, over $1.8 million worth of long positions have been forced to close due to margin shortages. In contrast, short liquidations totaled less than $500,000 during the same timeframe.

Open interest in SHIB derivatives decreased by 2.14% to $145.33 million over the past 24 hours. This decline suggests reduced overall market participation and interest in the token.

Recent trading activity shows continued pressure on bullish positions. Long liquidations reached $244,000 in the past day, while short liquidations were only $57,000.

The current price of $0.00001164 represents a minor recovery from Tuesday’s low of $0.00001134. This small bounce has provided some hope for bulls looking for stabilization.

Critical Support Levels

Two key price levels are drawing attention from technical analysts. The first support sits at $0.00001167, which SHIB recently broke below before attempting to recover.

The second critical level is $0.00001061, considered by many as the final defense for bulls. A break below this point could lead to further declines and potentially add another zero to SHIB’s price.

Trading volume has declined during recent price drops. Low volume at support levels typically indicates weak buyer conviction and can lead to further downside pressure.

Technical indicators show mixed signals for SHIB’s near-term direction. The token remains below its 50, 100, and 200-day moving averages, which now act as resistance levels.

Technical Analysis Points to Potential Reversal

Despite the bearish sentiment, some technical factors suggest a possible trend change. SHIB continues to hold above the $0.00001100 support level, which analysts view as critical for any recovery attempt.

The daily RSI shows a minor bullish divergence pattern. This could indicate that selling pressure is weakening even as price continues to decline.

MACD and signal lines are approaching a potential bullish crossover. If confirmed, this could push SHIB toward the 23.60% Fibonacci level at $0.00001390.

Above-average volume accompanied the closing price of $0.00001170, suggesting some buyer interest at current levels. This volume spike could indicate accumulation by longer-term investors.

Hourly RSI readings show oversold conditions. This technical setup often precedes short-term bounces if key support levels hold firm.

The $0.00001168 support level remains crucial for any technical bounce. A break below this point could negate the bullish technical setup and lead to further declines.

SHIB’s current price stands at $0.00001164 with traders closely watching the critical support levels for signs of stabilization or further breakdown.