Over 59 billion Shiba Inu (SHIB) tokens were liquidated in the past 24 hours, highlighting sharp volatility across the meme coin derivatives market. Data from CoinGlass shows that roughly 42.75 billion SHIB ($240,440) were liquidated from long positions, while 16.61 billion SHIB were wiped out from short trades.
Source: CoinGlass
The surge occurred as total crypto market liquidations reached $222.77 million, with 95,916 traders liquidated during the same period, according to CoinGlass. Despite the large derivatives wipeout, SHIB still gained about 1.42% in the last 24 hours, suggesting buyers are attempting to regain momentum.
As reported by CoinGlass, the large number of SHIB liquidations is indicative of the high degree of leverage. This is used by many traders during periods of market volatility.
During the past 24 hours, long liquidations for the broader crypto market were approximately $133.80 million, while short positions equaled about $88.98 million.
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The price action for SHIB was not strongly impacted by the large amount of liquidation activity. However, some market analysts feel that Shiba Inu may be at a significant technical turning point.
Well-known crypto analyst Javon Marks posted on X that SHIB appears to be building out its second falling wedge-like structure. Falling wedges are chart patterns that are commonly associated with breakouts into the bullish side.
Marks also stated that the prior breakout from this type of structure generated a price gain of more than 455%. Analyst “make sense” also indicated that SHIB may be entering into a new trend phase.
In his X post, “make sense” identified a few early indications of improving momentum. These include price breaking out of structure, a stronger trendline support, and price reclaiming important levels.
Analyst “make sense” also pointed out where he believes there will be a lot of buying pressure, specifically two different levels. First is $0.0000066, which he identifies as a possible “momentum unlock” point, and second is $0.0000072, which he considers to be a critical zone. This is based on his view that SHIB will continue its upward movement.
TradingView chart analysis indicates that Shiba Inu may be stabilizing after its recent pullback. Using the 4-hour timeframe charts, the token continues to compress in a declining structure, resembling the wedge structure referenced by the analysts.
Also, while still showing some bearishness, the momentum indicators (MACD and RSI) for SHIB are both showing the start of an upward movement. The RSI is now showing a downward trend toward the neutral zone, which indicates less selling pressure.
In addition, the MACD is now showing that the histogram is getting thinner. This further suggests less bearish momentum and potentially the beginning of a trend change in favor of the bulls.
Technical traders often look at the momentum indicators in combination with major moving averages to determine whether or not a longer-term trend reversal is taking place.
Source: TradingView
Large liquidation waves generally create a reset of the leverage in the crypto market and may result in a very sharp price move if traders are re-entering positions.
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