SHIB Crashes On Bitcoin Contagion With Liquidations Above $2M

Shiba Inu backtracks below key support as 24-hour long liquidations pile up above $2 million.

Shiba inu car spinning in circles whist the Bitcoin moon is in the dark.
Created by Kornelija Poderskytė from DailyCoin
  • Big Bitcoin sell-off by Germany and Mt. Gox implodes on the altcoin market.
  • Long leveraged SHIB position holders take a beating with $2M liquidations.
  • Heading back to $0.000015, SHIB is faced with an impending sell wall.

The popular Japanese hunting dog-embossed crypto currency Shiba Inu (SHIB) succumbed to a double-digit deficit this Friday, as the overall crypto market faces a severe pullback. Dropping below the strong support of $0.000015 due to a whirlpool of bearish events in the market, SHIB triggered a tsunami of long position liquidations on Derivatives markets.

Interestingly, one single long liquidation of $980.7K at $0.01 in the 1000-SHIB smart contract has contributed to nearly half of the liquidations. While the long versus short ratio remains on the short-selling side at 0.93, Binance’s customers are significantly more bullish on SHIB, as long positions outsource the short SHIB plays 2.21 to 1.

Wave Of Liquidations Shakes The Market

Aside from the $980K liquidated single-handedly in the early hours of June 5, 2024, the first part of the day offered an eye-watering total of $2.01 million in total liquidations. Additionally, the latest 24-hour period piled up to $2.33 million, according to the real-time stats by CoinGlass.

SHIB stats.

Meanwhile, Shiba Inu’s (SHIB) market price slumped to the daily lows $0.00001293, which also qualifies as a three-month low for the popular canine crypto. On Friday afternoon, SHIB managed to bounce back by 2.8% in an hour to reclaim the $0.000014 support level.

With that being said though, SHIB’s way northward is now challenged by a particularly large resistance barrier between the pre-claimed support levels of $0.000015 to $0.000019, holding 437T SHIB tokens between 85.92K crypto addresses, according to IntoTheBlock. This could imply further sell pressure due to the majority of holders facing a deficit at the current SHIB price.

On The Flipside

  • From a broader perspective, Shiba Inu’s (SHIB) liquidations account for just 0.3% of total 24-hour liquidations, despite SHIB being the 15th largest crypto by global market capitalization.
  • While the general crypto markets witnessed $679M in liquidations, Shiba Inu’s (SHIB) younger peers Dogwifhat (WIF) and Pepe Token (PEPE) both topped $3 million in overall liquidations.

Why This Matters

While Derivatives trades enable crypto traders to hedge their knowledge for bigger gains, leveraged plays also add another layer of risk due to heightened exposure to price fluctuations.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.