- Shiba Inu death cross triggers panic amid $441M crypto liquidations
- Massive liquidations shake markets as SHIB forms bearish signal pattern
- Derivatives surge 70% as SHIB struggles below key resistance levels
Shiba Inu came under renewed pressure as a sharp wave of liquidations exceeding $441M swept through the crypto market, forcing traders to quickly adjust positions. Consequently, market sentiment shifted toward caution as volatility increased following one of the largest recent derivatives expiries tied to Bitcoin and Ethereum. Moreover, investors reacted to weakening inflows and macro uncertainty, which contributed to a broader pullback across major digital assets.
According to recent market data, the liquidation event triggered rapid selling activity that pushed Shiba Inu into a short-term downtrend. As a result, the token recorded three consecutive days of decline, reflecting sustained pressure from profit-taking and cautious positioning. Additionally, traders reduced risk exposure as uncertainty continued to dominate the market environment.
Shiba Inu formed a death cross on the hourly chart, as the 50 moving average dropped below the 200 moving average, signaling increased bearish momentum.
This technical shift emerged during a period of heightened selling activity, which reinforced the short-term downward structure. Moreover, the pattern suggested that sellers maintained control as the market reacted to external pressures.
Meanwhile, Shiba Inu attempted a mild recovery after rebounding from support near $0.00000571, indicating some level of buying interest. However, the price struggled to break above the hourly 50 moving average, which continued to act as a strong resistance barrier. Consequently, the recovery remained limited as buyers showed hesitation in the current volatile environment.
Source: Tradingview
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Derivatives Surge Signals Heightened Market Tension
Open interest in Shiba Inu rose by 7.79%, reaching approximately $53.24M, which highlighted growing participation despite price weakness. Additionally, derivatives trading volume surged by nearly 70% to about $161.08M, reflecting intensified activity among short-term traders. This increase suggests that market participants are actively repositioning rather than exiting, as expectations for further movement continue to build.
At the same time, the broader market remained influenced by the expiration of Bitcoin options worth nearly $14B, which added to volatility. Besides, macroeconomic indicators such as consumer sentiment data came in near expectations, offering limited support to risk assets.
Shiba Inu continues to face short-term pressure as liquidation-driven volatility and technical signals shape market behavior. Moreover, the combination of a death cross and rising derivatives activity suggests that traders remain highly reactive. Consequently, price movement around key resistance and support levels will play a critical role in determining the next direction.
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