The price of Shiba Inu is encountering a significant challenge at $0.000015, as more than 3 million SHIB long positions are at risk of being liquidated should this crucial support level fail.
On Saturday, April 26, the price of Shiba Inu fell below $0.000015 as bullish momentum waned.
Data from derivatives trading indicates that a decline in the SHIB price below $0.00001400 may lead to a series of liquidations.
Shiba Inu Price Consolidates as Bulls Lose Momentum
The price of Shiba Inu has stagnated following a 17% increase over the weekly candle, with trading indicators indicating a potential decline in bullish momentum.
Currently priced at $0.00001419, SHIB has achieved a slight gain of only 0.6% in the past 24 hours, as per CoinGecko data.
Nevertheless, its failure to maintain early gains above $0.000015 underscores increasing selling pressure, particularly during U.S. trading hours when retail activity has significantly decreased. Earlier today, several sharp rejections near the $0.0000150 level on Binance and Coinbase suggested a waning enthusiasm among short-term bulls.
Following a significant surge during the Asian morning session, the price of SHIB has begun to form a series of lower highs, which typically indicates a decline in buyer confidence.
Traders on platforms predominantly used in Asia, such as Bybit and OKX, have reported an increase in spot selling, implying that some large investors may be reducing their exposure in anticipation of the weekend.
Shiba Inu currently holds a market capitalization of around $8.36 billion, securing its position as the 18th largest cryptocurrency.
Nevertheless, after last week's increase, traders seem to be adopting a more cautious approach as liquidity decreases, looking for clearer directional indicators, especially since Bitcoin was unable to maintain the $95,000 threshold.
Nearly 3 Million SHIB Longs Risk Liquidation at Critical Price Level
The liquidation data presents an additional source of concern for
$SHIB Inu. As per the most recent Liquidation Map from Coinglass, nearly 2.96 million SHIB long positions are vulnerable to liquidation should the price fall to $0.00001365.
Notably, Binance represents 766,710 SHIB of this leveraged exposure, establishing it as the primary contributor to potential liquidation pressure.
The map indicates a significant liquidity pocket at this price point, suggesting that a decline could initiate a cascade of forced selling as margin positions are automatically liquidated.
Historically, similar trends have been observed, such as in late March when SHIB experienced a decline of $0.000012, resulting in a price drop of 5% to 8% within hours due to intensified liquidation pressures.
Recent activity on Binance Futures indicates an increase in the SHIB long-to-short ratio, which peaked at 2.7:1 earlier today before experiencing a slight decrease.
Over the last month, cumulative long leverage has consistently decreased, yet significant clusters of overexposed long positions remain just below the current SHIB price.
This concentration implies that $0.00001365 has become a critical liquidity zone; if tested, it could trigger a swift cascading effect similar to the sharp liquidations observed in altcoins like PEPE and FLOKI earlier this month.
In the current market environment, a sustained drop below $0.00001400 could initiate a severe liquidation cascade towards $0.00001365, and potentially lower if panic selling occurs.
On the other hand, if the SHIB price can maintain solid support above $0.00001420 and reclaim $0.00001450, it may prevent a more significant correction.
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