Shiba Inu staged a sharp recovery on Tuesday, climbing to an intraday high of $0.00000575. The rebound follows a week of consecutive losses that dragged the token to a low of $0.00000522. At the time of writing, SHIB traded at $0.00000572, up 5.17% in the past 24 hours. The move caught bearish traders off guard, triggering a wave of forced liquidations across the derivatives market.
The broader crypto market mirrored the recovery. Risk appetite returned as traders reassessed recent sell-offs. Major tokens gained ground alongside SHIB, pointing to a market-wide shift in short-term sentiment.
Short Sellers Bear the Brunt of Liquidations
Data from CoinGlass reveals that Shiba Inu recorded $48,260 in total liquidations during the rally. Short positions dominated the losses. Of that figure, $38,680, equivalent to 6.3 billion SHIB, came from short liquidations. Long liquidations accounted for just $9,580.
The imbalance is stark. Traders who had bet against SHIB were caught unprepared as prices reversed. This pattern extended beyond SHIB. Across the entire crypto market, $327 million in positions were liquidated. Short positions made up $200 million of that total, confirming that bearish bets were broadly unwound during Tuesday’s price surge.
SHIB has now fully reversed its weekly losses. The token is up 8.02% over the past seven days, erasing the damage from three straight weeks of price declines.
Technical Signals Point to a Potential Breakout
Shiba Inu’s weekly Bollinger Bands are narrowing. This technical pattern, known as a squeeze, often precedes a significant price move in either direction. The contraction follows the recent string of weekly losses, suggesting the token may be building pressure ahead of a decisive shift.
Key resistance levels are now in focus. The immediate target sits at $0.00000587, with a secondary level at $0.00000653. On the downside, $0.00000526 serves as the nearest support. A break above resistance could open the door for further gains, while a failure to hold support may renew selling pressure.
On-chain and derivatives data point to growing interest following the sell-off. However, analysts note that conviction has yet to fully return to the market. Traders appear to be waiting for clearer direction before committing to larger positions.
Source: https://coinpaper.com/15315/shiba-inu-price-surges-5-as-38-k-in-short-liquidations-fuel-shib-recovery
