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Highlights
- Shiba Inu price remains under bearish as it slips 2% today and continues trading within a descending parallel channel.
- $383,000 liquidations in the last 24 hours shows long traders are recording losses as shorts now dominate the market, increasing the likelihood of a short squeeze.
- If Shiba Inu price bounces from the descending parallel channel, it may rebound and repeat historcal patterns.
Shiba Inu (SHIB) has recorded a slight 1% gain in 24 hours, with $93 million in daily trading volumes. During the same period, SHIB has recorded $383,000 in total liquidations, with the majority being from overleveraged longs. Amid these liquidations, how will Shiba Inu price perform? Will the price surge or record further dips?
383,000 Liquidation Signal Potential Shiba Inu Price Reversal
Derivatives market data shows that while the market sentiment towards Shiba Inu price performance remains bearish, there is potential for a reversal. In the last 24 hours, SHIB-related perpetual contracts recorded more than $383,000 in liquidations. Most of the closed positions were overleveraged longs.
The closure of these long positions means that shorts are now dominating the market, amid the negative funding rate and rising open interest on the 1000SHIB and SHIB1000 contracts.
The increasing short positions increase the risk of a short squeeze that may cause a bullish reversal and see SHIB bounce after making a series of lower highs and lower lows. If this happens, Shiba Inu price could post a reversal trend similar to what happened in March and April.
In case the ongoing short positioning leads to a short squeeze, SHIB price may not only overcome bearish trends but also aim for multi-week highs. As CoinGape recently reported, Shiba Inu may still hit $0.000045 as the higher timeframe chart shows bulls remain strong.
SHIB Slips 2% as Bearish Trends Persist
Shiba Inu has opened the week on a bearish note amid choppy moves across the broader crypto market. The ongoing downward trend may persist in the near term, as the daily chart indicates that sellers remain in control.
Shiba Inu price fluctuates within a descending parallel channel with lower highs and lower lows amid a steady selloff that began on May 10. The sell-side activity has caused SHIB’s 18% 30-day drop.
This descending channel shows that the short-term momentum is bearish. The RSI at 38 proves this bearish case as selling pressure far outweighs the buying pressure. The MACD also paints a similar outlook as both the MACD line and histogram bars remain negative.
The bearish technical setup may push the Shiba Inu price below the $0.0000119 support level. If SHIB closes below this support, which also marks the lower boundary of the parallel channel, it could add a zero. A recent CoinGape analysis also highlights a similar bearish outlook, noting that a bearish pattern breakout could trigger Shiba Inu to crash, knocking the token down to $0.000009.
Conversely, there is a repeat of historical patterns each time SHIB price tests the lower trendline support. Each retest has often preceded a bullish reversal, as was the case in March and April. If SHIB defends the $0.0000119 support, it may lead to an upward trend.
In conclusion, Shiba Inu may continue to show weakness as the descending parallel channel shows that sellers remain in control. However, after 383,000 liquidations, short sellers are now dominating the market, and this increases the likelihood of a short squeeze.
For a more detailed Shiba Inu price prediction for 2025 and beyond – Read This.
Frequently Asked Questions (FAQs)
1. What do the $383,000 liquidations mean for Shiba Inu traders?
2. Why is Shiba Inu price dropping today?
3. Can Shiba Inu price recover in June 2025?
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