The Shiba Inu futures market experienced a dramatic imbalance over the past 12 hours. Data from CoinGlass reveals long liquidations exceeded short positions by 8,972%. The disparity signals mounting pressure on leveraged traders betting on price increases.
Approximately $18,710 in long positions were liquidated during this period. Short liquidations totaled just $208.85 by comparison. The skewed ratio suggests one-sided market positioning and declining buyer confidence in the meme coin’s near-term prospects.
Death Cross Formation Confirms Bearish Momentum
Technical indicators paint a concerning picture for SHIB holders. The token has formed a death cross pattern, with its 23-day moving average crossing below the 50-day moving average. Traders commonly interpret this signal as a precursor to extended downward price movement.
At the time of writing, SHIB trades at around $0.000006707, hovering dangerously close to a critical support level at $0.00000667. The proximity to this threshold raises concerns about potential downside scenarios. A breakdown below this support could push the token into lower-liquidity zones where reliable price floors become difficult to identify.
The combination of lopsided liquidations and bearish technical patterns creates a challenging environment for the asset. Market participants appear hesitant to establish new long positions given recent price action. Volume metrics support this observation, showing reduced trading activity compared to historical averages.
Institutional Criticism Adds to Market Uncertainty
Broader sentiment surrounding meme tokens faces scrutiny from institutional players. Evgeny Gaevoy, CEO of Wintermute, criticized current token economic models today. The institutional market maker executive described existing buyback and lockup mechanisms as fundamentally flawed in their implementation.
His comments arrive at a particularly sensitive time for SHIB. The token already contends with technical weakness and unfavorable derivatives positioning. Criticism from respected institutional figures may further erode confidence among retail and professional investors alike.
Source: https://coinpaper.com/14300/shiba-inu-price-faces-worst-liquidation-event-here-s-what-it-means
