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SHIB Crashes On Bitcoin Contagion With Liquidations Above $2M

DailycoinDailycoin2024/07/07 01:31
By:Dailycoin
  • Big Bitcoin sell-off by Germany and Mt. Gox implodes on the altcoin market.
  • Long leveraged SHIB position holders take a beating with $2M liquidations.
  • Heading back to $0.000015, SHIB is faced with an impending sell wall.

The popular Japanese hunting dog-embossed crypto currency Shiba Inu (SHIB) succumbed to a double-digit deficit this Friday, as the overall crypto market faces a severe pullback. Dropping below the strong support of $0.000015 due to a whirlpool of bearish events in the market, SHIB triggered a tsunami of long position liquidations on Derivatives markets.

┌🟥 #1000SHIB Liquidated Long – $980.7K at $0.01
└Funding Rate: 0.00%

— CryptoCrunchApp (@CryptoCrunchApp) July 5, 2024

Interestingly, one single long liquidation of $980.7K at $0.01 in the 1000-SHIB smart contract has contributed to nearly half of the liquidations. While the long versus short ratio remains on the short-selling side at 0.93, Binance’s customers are significantly more bullish on SHIB , as long positions outsource the short SHIB plays 2.21 to 1.

Wave Of Liquidations Shakes The Market

Aside from the $980K liquidated single-handedly in the early hours of June 5, 2024, the first part of the day offered an eye-watering total of $2.01 million in total liquidations. Additionally, the latest 24-hour period piled up to $2.33 million, according to the real-time stats by CoinGlass.

Meanwhile, Shiba Inu’s (SHIB) market price slumped to the daily lows $0.00001293, which also qualifies as a three-month low for the popular canine crypto. On Friday afternoon, SHIB managed to bounce back by 2.8% in an hour to reclaim the $0.000014 support level.

With that being said though, SHIB’s way northward is now challenged by a particularly large resistance barrier between the pre-claimed support levels of $0.000015 to $0.000019, holding 437T SHIB tokens between 85.92K crypto addresses, according to IntoTheBlock . This could imply further sell pressure due to the majority of holders facing a deficit at the current SHIB price.

On The Flipside

  • From a broader perspective, Shiba Inu’s (SHIB) liquidations account for just 0.3% of total 24-hour liquidations, despite SHIB being the 15th largest crypto by global market capitalization.
  • While the general crypto markets witnessed $679M in liquidations, Shiba Inu’s (SHIB) younger peers Dogwifhat (WIF) and Pepe Token (PEPE) both topped $3 million in overall liquidations.

Why This Matters

While Derivatives trades enable crypto traders to hedge their knowledge for bigger gains, leveraged plays also add another layer of risk due to heightened exposure to price fluctuations.

Discover DailyCoin’s trending crypto news:
Solana Leads Crypto Market Crash as Technicals Turn Red
Ethereum ETF Key Dates Predicted Ahead of Trading Day Debut

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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