Shiba Inu Faces Major Liquidation Event: What It Means for the Market

Shiba Inu's futures market has seen a massive surge in long position liquidations, surpassing short liquidations by 8,972%. This major imbalance suggests that traders are losing confidence in the cryptocurrency's price stability.

In the past 12 hours, long positions worth around $18,710 were liquidated, while short positions saw only $208.85 in liquidations. This dramatic imbalance points to a growing sense of pessimism among investors betting on Shiba Inu’s price increase.

A death cross pattern has emerged on Shiba Inu’s chart, where its 23-day moving average dips below the 50-day moving average. This technical formation is often seen as a precursor to further price drops. SHIB is currently hovering near a critical support level at $0.00000667, and a breach below this could trigger further declines into lower liquidity zones.

Trading activity has significantly decreased, as seen in volume metrics, signaling a lack of investor interest in entering new long positions. The market's overall reluctance to buy into Shiba Inu reflects the ongoing uncertainty and weakening sentiment.

Institutional players, including figures like Evgeny Gaevoy, CEO of Wintermute, have criticized Shiba Inu’s economic model. Gaevoy called the token’s buyback and lockup mechanisms fundamentally flawed, which only adds to the skepticism surrounding Shiba Inu’s future prospects.