Shiba Inu’s Long-Short Ratio Slumps as Bulls Face $1.8M in Liquidations

A key sentiment gauge for Shiba Inu (SHIB) has flipped bearish, highlighting growing caution among traders after the token’s slide to a two-month low.

The long-short ratio in SHIB’s perpetual futures market has fallen to 0.9298, signaling that short positions now outnumber longs, according to CoinDesk’s AI insights. The ratio measures the number of active bullish positions relative to bearish ones, offering a glimpse into overall market sentiment.

This shift follows significant forced liquidations of bullish bets totaling over $1.8 million since June 12, per data from Coinglass. In contrast, short liquidations during the same period amounted to less than $500,000, underscoring the predominance of bearish pressure.

Over the past 24 hours, caution has deepened across SHIB’s derivatives market, with open interest declining by 2.14% to $145.33 million. Long liquidations surged to $244,000, sharply higher than the $57,000 in shorts closed out.

On the spot market, SHIB’s price has dropped by 10% to $0.00001164 since June 12, though a modest rebound from Tuesday’s two-month low of $0.00001134 is sparking tentative optimism on shorter timeframes.

Key Technical Insights

• Support Holding: SHIB continues to defend support above the crucial $0.00001100 level, hinting at the potential for a trend reversal.
• Momentum Indicators: Daily charts show a minor bullish divergence in the RSI, while the MACD and signal lines are approaching a bullish crossover that could drive SHIB toward the 23.60% Fibonacci retracement level at $0.00001390.
• Volume Confirmation: Above-average trading volume helped lift SHIB’s price to a close of $0.00001170, signaling stabilization near key support.
• Short-term Bounce Potential: The hourly RSI shows oversold conditions, suggesting a possible technical bounce if support at $0.00001168 holds firm.