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Shiba Inu fell to lows last seen in October 2023 as the crypto market deepened a sell-off that has persisted in recent weeks.
A total of $2.45 billion has been liquidated alone in the last 24 hours following a weekend drop, with significant losses recorded among most digital assets. Long positions accounted for the majority of liquidations, coming in at $2.27 billion, with shorts accounting for only $180 million.
This imbalance points to traders being caught unawares by the crash while staying optimistic about a rebound after weeks of range-bound price action in the markets.
Amid the price drop, Shiba Inu saw its open interest crash, falling 11%. According to CoinGlass, Shiba Inu's open interest came in at $75.74 million, with futures flow dropping 193% in the last 24 hours, suggesting traders reducing exposure in the derivatives market.
Thin weekend liquidity increased selling pressure as trading volumes declined into the weekend, a setup that might boost volatility.
SHIB price drops
Shiba Inu saw a sharp price drop on Saturday, falling to a low of $0.00000617 last seen nearly three years ago, in a four-day drop.
Shiba Inu team member Lucie reacts to the market crash, which has seen $2.45 billion in positions wiped out, saying: "these crashes all follow the same script. Over-leverage, panic, forced selling, repeat. Survival in crypto is not about timing every move. It is about a strong community and staying present when everything shakes." "But we got this," Lucie added.
The thin liquidity hanging over the market alongside risk appetite waning might suggest more of a reset.
Shiba Inu has broadly declined since the Jan. 5 high of $0.00001008; meanwhile, RSI indicators are nearing oversold levels at 30, hinting at the possibility of a relief rally in the coming sessions.
In the event of a rebound, Shiba Inu might target $0.00000785, $0.00001008 and then $0.00001047. Support lies next at $0.0000055 if the declines continue.
Tomiwabold Olajide
Dan Burgin
Gamza Khanzadaev