- Shiba Inu’s rally fails at key resistance, triggering $154,000 in long liquidations.
- Traders face steep losses as 11.47 billion SHIB tokens are forced out.
A very sharp turnaround in Shiba Inu’s price action has wiped out any gains from its recent recovery, and traders have had to liquidate over 154,000,000 worth of the cryptocurrency in less than 24 hours.
Resistance at $0.00001320 Sparks Liquidation Wave
Shiba Inu has been on the rise since September 6, steadily climbing to a high of $0.00001320 in four days. The bullish trend ceased as the token faced resistance at the daily 200 SMA of above 0.000013. This level was tried twice in three days, but it could not withstand it, and a rapid decline was initiated.
Thursday saw Shiba Inu drop to $0.00001293, turning the previous high against bullish traders. Coinglass data indicated that long positions worth 154,200 were liquidated within 24 hours. By contrast, short liquidations were a small $4,970. Over 11.47 billion SHIB tokens were sold, with the worth of the long positions estimated to be $149,230.
The correction indicates the weakness of the sentiment in the market at the resistance levels, which indicates that the profit-taking by certain traders escalated the downward force.
Liquidations Accelerated by Failed Momentum and Profit-Taking
Market information points to the rapid nature of optimism’s crash in situations where the resistance level becomes excessively high. The fact that Shiba Inu could not hold on to momentum beyond 0.000013 generated a feedback loop that resulted in the unwinding of long positions and subsequent forced sales. Traders who were hoping to see long runs were taken unawares because selling pressure was increased due to liquidation orders.
The liquidation frenzy has remade the short-term sentiment around Shiba Inu. Nevertheless, despite the losses, the token is still actively traded and gaining speculative attention. As resistance at $0.000013 continues to loom, traders reevaluate risk exposure with the market high on uncertainty. They closely watch price action to see if the market will have rebounds or further declines.
Shiba Inu’s volatile movement indicates the dangers inherent in leveraged positions and the rate at which market opinion can shift within the digital asset portfolio.
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