SHIB Long-Short Ratio Declines Amid Liquidation of Over $1.8 Million in Bullish Positions
The long-short ratio in the perpetual futures market has dropped to 0.9298, reflecting bearish sentiment from traders as SHIB faces significant liquidations.
SHIB Long-Short Ratio Declines Amid Liquidation of Over $1.8 Million in Bullish Positions
The long-short ratio in the perpetual futures market has fallen to 0.9298, indicating a bearish outlook among traders following the liquidation of more than $1.8 million in long positions.
What You Should Know:
- SHIB’s price has seen a 10% decrease to $0.00001164 over the past week.
- The plummeting long-short ratio signals heightened bearish sentiment in the trading community as forced liquidations have intensified.
- Technical indicators suggest a potential reversal trend as SHIB maintains support above $0.00001100, with signs of a bullish crossover emerging.
A crucial indicator for Shiba Inu (SHIB) is currently showing negative trends as its price has recently dropped to a two-month low, shaking out leveraged bullish positions. This ratio measures the balance between long and short positions in the market, offering insights into traders’ sentiment.
According to CoinDesk’s analysis, this significant decrease in the ratio correlates with liquidations exceeding $1.8 million since June 12, due to margin issues that caused exchanges to settle certain positions. During this time, the value of shorts that were forced out was below $500,000.
In the past 24 hours, the derivatives market shows increasing caution, with open interest down by 2.14% to $145.33 million and long liquidations climbing to $244,000, compared to just $57,000 for shorts.
Despite this overall decrease, technical indicators are still hinting at a possible recovery. SHIB is holding support above the vital level of $0.00001100 and a minor bullish divergence in the daily RSI suggests the potential for a reversal.
Key Insights:
- SHIB’s support holding above $0.00001100 could signal a trend shift.
- Indicators are showing that there might be a bullish crossover soon, potentially bringing prices closer to the 23.60% Fibonacci level at $0.00001390.
- Trading volume has indicated buyer interest, with a closing price of $0.00001170, suggesting price stabilization.
- The hourly RSI is displaying oversold conditions, which could lead to a bounce if support levels are maintained.
Disclaimer: Portions of this article were generated with AI tools and reviewed to ensure compliance with accuracy standards.
