The Shiba Inu team issued a warning to traders after a $20 million liquidation wave affected SHIB within a 24-hour period. Long positions absorbed $12.9 million of the total liquidations, while shorts lost approximately $7 million.
The caution reflects market structure concerns highlighted by the team. Futures volume reached $49.3 million over the same window, compared to spot trading volume of $10.8 million, making derivatives activity roughly 4.5 times larger than direct token buying and selling.
Long Positioning and Liquidation Risk
Bullish bets outnumber bearish positions at a 2.71-to-1 ratio, according to the team's analysis. This heavy long tilt creates vulnerability to cascading liquidations, as further price declines could force additional long positions to close, adding downward pressure.
The team's warning emphasized that borrowed money driving futures contracts often causes outsized price swings relative to the underlying token value. Small moves can trigger significant liquidations when leverage is high.
Exchange Inflows Signal Selling Readiness
The Shiba Inu team also noted significant exchange activity. Over 24 hours, 324.28 billion SHIB moved onto exchanges while 232.21 billion left, resulting in a net inflow of approximately 92.07 billion tokens.
The team characterized exchange inflows as a gauge of selling readiness, since tokens on trading venues can reach market immediately, whereas tokens in self-custody require transfers before sale.
The current inflow is modest compared to June, when whales transferred 1.04 trillion SHIB to exchanges in a single day. The team indicated that future flow data will clarify whether incoming tokens are sold or remain on exchanges.
