Shiba Inu leveraged traders suffered heavy liquidations over the past 24 hours as the memecoin slipped below the $0.000006 level, triggering forced closures across leveraged positions. Although the memecoin surged on Wednesday and crossed $0.00000625, the price reversed lower yesterday, catching long traders by surprise. As a result, 11,276,041,666 (11.27 billion) in Shiba Inu longs were removed from the market in just 24 hours.
According to CoinGlass data, Shiba Inu currently trades around $0.00000576, with the expansive liquidations threatening to push prices lower.
Long Shiba Inu Traders Bear the Brunt of Liquidations
CoinGlass data shows that a total of $73,910 was removed from the Shiba Inu leveraged market in the last 24 hours amid ongoing market volatility. Shiba Inu long positions made up about 88%, or $64,950 of that figure, amounting to 11,276,041,666 (11.27 billion) SHIB tokens.
Long traders had leaned bullish as SHIB climbed higher during the previous session before the sudden price drop. Liquidated short positions made up a meager 12% of total liquidations, amounting to $8,960 or 1,504,617,968 SHIB.
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Total Crypto Liquidations Hit $450M in 24 Hours
Moreover, the broader data reflects widespread bearishness across the cryptocurrency market. Total cryptocurrency liquidations over the past 24 hours amounts to $450.18 million. Of that figure, 89.3% were long positions, taking $401.88 million off the markets. Conversely, only $48.46 million was liquidated in short positions over the same period.
Futures Market Reveals Growing Volatility
The massive liquidation event of the last 24 hours points to increasing volatility across the crypto market. Most major tokens and memecoins, including Bitcoin, Ethereum, and Shiba Inu, surged briefly earlier in the week. Investors saw relief from ongoing geopolitical tensions between Iran and the U.S. as President Donald Trump ordered a ceasefire while peace talks commenced.
Bitcoin rose from below $68,000 and almost reclaimed $72,000. Ethereum attempted to test the $2,200 resistance. Yet, all of the major tokens reversed course and plunged, taking traders with leveraged long positions by surprise.
Meanwhile, Shiba Inu’s open interest sits around $52.4 million, indicating that leveraged trading activity remains subdued today. Additionally, SHIB’s futures volume is down 11% today, standing at $93.93 million.
These metrics do not paint a bullish picture for SHIB in the current market landscape. However, these large long liquidations could produce net positive results. Large long liquidations often indicate that bullish traders were overly leveraged before a correction.
Once these positions are cleared, markets sometimes stabilize as excess leverage is removed. Thus, traders will continue to closely monitor derivatives activity to see if leverage continues to unwind or builds back up.
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Temitope Olajide
