- Short positions worth nearly $52 million in Shiba Inu (SHIB) are waiting for liquidation this week.
- If liquidations occur, SHIB’s price could fall to around $0.000011, with additional price drops possible if panic selling takes place.
- SHIB is down 6.1% this week and trading at approximately $0.000013 as of Tuesday, with its price stagnant for almost four months.
- If SHIB’s price increases by just 10% to 15%, traders who have bet against the token could face major losses.
- Historical data shows SHIB often rebounds after significant price drops, offering lower entry points for investors.
Nearly $52 million in short positions are stacked against Shiba Inu (SHIB) this week, according to data from Coinglass. Short sellers, investors betting that SHIB’s price will fall, may soon trigger liquidations if the cryptocurrency’s value continues to drop.
Source data shows short positions worth $51.96 million face liquidation, which means assets could be sold off by exchanges to cover losses. This would put downward pressure on SHIB’s price. Currently, the token has fallen 6.1% and is trading at about $0.000013.
The total volume of sell orders is larger than buy orders, according to the article. This puts SHIB at risk for an additional price dip. If Shiba Inu falls further and liquidations kick in, the price could hit the $0.000011 mark. Panic from retail investors might cause SHIB to lose even more value. A history of price stagnation for nearly four months has encouraged more investors to place bets against the token.
Should SHIB drop enough to add an extra zero to its price, as the article suggests, it might create discounted buying opportunities. Data from Coingecko shows SHIB has not fallen below $0.000007 since September 2023. Each time SHIB has added a fifth zero, it has usually rebounded quickly. This historical trend could encourage some investors to accumulate the token if the price drops sharply.
If SHIB’s price were to rise by 10% to 15% instead, short traders could be forced to buy back the token at higher prices, leading to substantial losses. For now, however, the prevailing trend is downward as large short positions remain open.
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