Cryptocurrency investors have shorted Shiba Inu (SHIB) tokens worth nearly $52 million, which may soon trigger a new round of price declines and trigger liquidation.
According to the latest data from Coinglass, there are short positions worth $51.96 million pending liquidation this week—however, if the SHIB price suddenly rises by 10%-15%, short sellers may face huge losses. The reality is that as of Tuesday, this dog-themed token has fallen by 6.1% without any signs of rebound.
Currently in the market, the weight of short orders exceeds buy orders, which could push the SHIB price further down.
Since Shiba Inu has not seen a significant rise recently, the chances of a price rebound are low; its price has stagnated for nearly four months, leading investors to prefer betting on short positions. If the $52 million short liquidation occurs this week, the SHIB price may see a significant drop.
If a liquidation of $52 million is triggered, the SHIB price may drop to $0.000011; if retail investors panic and sell off, the price may even add another zero (i.e., drop to the $0.000001 level).
As of Wednesday, the SHIB price has dropped to $0.000013, down 3.41% from before.
However, if Shiba Inu falls an extra zero due to liquidation, it may create a buying opportunity for traders: at that time, SHIB will be sold at a lower discount, allowing long-term holders to increase their positions. Historically, the price may have approached the bottom, and investors are expected to profit from it.
Data shows that since September 2023, SHIB has never fallen below the $0.000007 range, and each time the price approaches the fifth zero, there is a strong rebound. Therefore, if liquidation causes the price to drop to a low point, buying Shiba Inu at that time may be a wise move.
