- Shiba Inu’s surge crashes, triggering massive liquidations worth $154,000.
- Traders caught off guard as Shiba Inu falls sharply.
- Liquidations skyrocket as Shiba Inu tests critical resistance level.
Shiba Inu’s recent bullish rally came to an abrupt halt as traders faced heavy liquidations. The cryptocurrency saw a four-day surge starting from September 6, which brought its price to a peak of $0.00001320. However, this bullish momentum couldn’t hold as Shiba Inu reached a key resistance level, particularly above the daily SMA 200 at $0.000013. The resistance of $0.00001320 was tested twice in only three days, and the price was unable to gain momentum and began to fall back.
This reversal caused heavy losses to many traders who were anticipating further price increments. Thursday saw Shiba Inu drop to as low as $0.00001293 after beginning the day at $0.00001320, to the dismay of bullish traders. The surge in collapse led to the liquidation wave, which washed out large stakes in a few hours.
The coinglass trading data indicates that long positions totaling 154,200 were liquidated in a mere 24 hours, and a large percentage of them were long liquidations. On the contrary, short positions were as modest as $4,970. An unbelievable 11.47 billion SHIB tokens were cashed in, and each was valued at approximately $149,230.
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Liquidations Sparked by Resistance Levels and Profit-Taking
The sharp price correction highlights how quickly sentiment can change in the volatile cryptocurrency market. As Shiba Inu approached the critical resistance levels of $0.000013 and $0.00001320, traders who had bet on continued gains found themselves on the losing side.
When Shiba Inu neared the important resistance areas of $0.000013 and $0.00001320, traders who had placed a bet on further profits were caught on the wrong side of the edge. The taking of profits and liquidation of long positions left some in shock, which added to the falling pressure on the token’s price.
Although the liquidations are high, Shiba Inu is still one of the favorite assets among traders, and its price movement has not ceased to be followed. Whether the cryptocurrency will bounce back after this correction or continue to fall further remains the question as it battles resistance and market uncertainty.
The recent price rise and fall of Shiba Inu are warnings about how volatile the crypto market could be. Over $154,000 in liquidations affecting long traders have shifted market sentiment, and traders are reassessing their positions for what lies ahead.
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