SHIB Long-Short Ratio Slides as Over $1.8M in Bullish Bets Liquidated
Shiba Inu (SHIB) is experiencing a downturn, marked by a significant price drop to its lowest point in two months. This decline has triggered a wave of liquidations in the perpetual futures market, a key indicator of bearish sentiment. The long-short ratio, a measure of bullish versus bearish bets, has plummeted to 0.9298, signaling a prevailing bearish outlook among traders.
This shift in sentiment is underscored by data from Coinglass, revealing over $1.8 million in liquidated long positions since June 12th. This contrasts sharply with less than $500,000 in short liquidations during the same period, highlighting the disproportionate impact on bullish traders. The forced closure of these leveraged long positions, primarily due to margin calls, indicates a significant loss of confidence in SHIB’s short-term prospects.
Further emphasizing the bearish pressure, the derivatives market shows a decline in open interest—a measure of total outstanding contracts—by 2.14% over the past 24 hours, reaching $145.33 million. Long liquidations surged to $244,000 during this period, while short liquidations remained relatively low at $57,000. This disparity underscores the significant outflow of bullish capital.
The price of SHIB has consequently fallen by approximately 10% since June 12th, reaching $0.00001164. While a minor recovery from Tuesday’s two-month low of $0.00001134 offers a glimmer of hope, the overall trend remains bearish.
However, some technical indicators suggest a potential for a short-term rebound. SHIB maintains support above the crucial $0.00001100 level, a positive sign. Technical analysis reveals a minor bullish divergence in the daily Relative Strength Index (RSI), coupled with the MACD and signal lines nearing a bullish crossover. This convergence could potentially propel SHIB towards the 23.60% Fibonacci retracement level at $0.00001390. The high trading volume accompanying the closing price of $0.00001170 suggests a degree of stabilization above the critical support level. Furthermore, the hourly RSI indicates oversold conditions, increasing the likelihood of a technical bounce if the $0.00001168 support holds. Overall, while the short-term outlook remains uncertain, the technical indicators offer a mixed signal, highlighting the need for caution and continued monitoring.
