TL;DR
- Shiba Inu recorded a liquidation imbalance close to 5,000%, dominated by long positions, yet the price moved higher instead of posting the expected decline.
- Within four hours, roughly $10,590 in long positions were liquidated versus just $213 in shorts, a leverage cleanup that did not translate into sustained downside pressure.
- SHIB trades near $0.00000721, turning that area into a key level: holding it would reinforce the idea of a technical reset, while losing it could trigger a deeper correction.
Shiba Inu delivered an atypical session that once again highlighted the interaction between derivatives, leverage, and the spot market in meme coins. The token posted a liquidation imbalance close to 5,000%, an event that in most cases ends with lower prices. This time, the opposite happened.
CoinGlass data shows that the hit was almost entirely concentrated on long positions. On the four-hour chart, around $10,590 in longs were liquidated versus just $213.72 in shorts. The market carried out an aggressive cleanup of buyer-side leverage, a typical signal of exhaustion after late entries. However, the price did not follow the same path.
Instead of extending the drop, SHIB broke higher and closed the session in the green. According to TradingView, the token trades near $0.00000721, up 2.12% on the day. The move featured a fast jump after the liquidation, followed by a choppy consolidation phase near the intraday highs. There was no gradual bleed or an additional cascade of liquidations.
The rebound was not driven by a short squeeze either. Short positions played almost no role, ruling out forced buying from short liquidations. The move fits a different reading: the market flushed excess long leverage, and once the forced selling was done, spot buyers stepped in to absorb supply.
SHIB: Technical Reset or Structural Weakness?
This type of reaction suggests SHIB was not as fragile as derivatives positioning implied. Leverage was crowded, but underlying demand remained active. In that context, the liquidation acted as a technical reset rather than a sign of structural weakness.
The $0.0000072 level now becomes a key reference point. If SHIB manages to hold that zone on pullbacks, derivatives traders may view the episode as a reset and start looking for a return toward the intraday spike area. On the other hand, a clear break below $0.000007, combined with another long-heavy liquidation wave, would shift the bias and validate the case for a deeper corrective move
