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Popular meme-inspired cryptocurrency Shiba Inu (SHIB) continues to dominate the news headlines, this time due to the wild imbalance of liquidations that emerged over the past 24 hours. Thus, according to data from CoinGlass, over the past 24 hours, the volume of liquidations with Shiba Inu token futures amounted to $2.65 million. The volume of liquidated long positions is almost seven times more and amounts to $2.31 million.
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The reasons for this imbalance are obviously to be found on the price chart of the popular meme cryptocurrency.
What’s up with SHIB price?
During the period under review, the price of SHIB first collapsed by 6.92% to $0.00002283. Having found a bottom here, the price of SHIB further rose to $0.00002432 and then collapsed again by more than 3%.
This price action, which can be compared to a roller coaster ride, was the reason not only for the large gap in bearish and bullish liquidations, but also for the fact that these liquidations reached such a volume.
It is like that across the entire crypto market, where the volume of futures contract liquidations exceeded $510 million in 24 hours, and this after several days with liquidations worth billions of dollars.
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Liquidations are not only a consequence but also the cause of rapid price movements, and this applies to SHIB as well. It is likely that part of the fall of the last hours was caused just by the need of bulls to close positions and sell cryptocurrency as the price did not go further.
It remains to be seen what is in store for Shiba Inu, but it is possible that, after such a turbulent week, the crypto market, represented by its participants, will take time to take a break and think. This means that SHIB may continue to trade in the current range for some time.