Top meme coin Shiba Inu recorded a 699,000% liquidation imbalance as its price dropped sharply along with the broader crypto market. This has again sparked a bearish sentiment, with the bears looking to be in control.
How the Shiba Inu 699,000% Imbalance Happened
Coinglass data showed that the Shiba 699,000% imbalance occurred due to the large disparity in the long and short positions that were liquidated in the space of one hour. This came as the SHIB price sharply dropped alongside the broader crypto market, led by Bitcoin, which declined to as low as $112,500 in the last 24 hours.
The Shiba Inu price has dropped to as low as $0.00001206 during this period from an intraday high of $0.00001264, flushing a significant amount of long positions in the process. Further data from Coinglass shows that $425,230 in long positions have been wiped out in the 24-hour period, compared to just $11,230 in short positions.
This development has sparked a bearish sentiment among Shiba Inu’s bulls, who appear to be waiting to see how things unfold before reentering the market. SHIB’s open interest is down over 4% in the last 24 hours, currently at $191.38 million. Meanwhile, the derivatives trading volume is also down 2%, currently at $177.46 million.
However, a positive for Shiba Inu is that the long/short is at 1.0838, which indicates that more traders are currently long than short. This could spark a massive rebound when the market stabilizes. The crypto market is currently experiencing significant volatility ahead of Jerome Powell’s speech at the Jackson Hole Symposium on August 22. Investors await to see whether the Fed Chair will take a hawkish or dovish stance, with rate cuts in focus.
SHIB Burns Skyrocket 2,196%
Shibburn data shows that Shiba Inu’s burns have skyrocketed 2196% in the last 24 hours, with 1.6 million SHIB burned during this period. However, the burns are down over 28% in the last seven days, with about 72 million tokens burned this period. Increase in burns is typically bullish for the meme coin, since it could spark a supply shock as demand increases.
The 24-hour increase in Shiba Inu’s burns follows the SHIB Chainlink integration, which enables token burns to occur across multiple networks. Amid these developments, crypto analysts like Javon Marks remain bullish on SHIB’s trajectory. The analyst earlier this month predicted that the top meme coin could rally over 150% to reach $0.000032, which may just be the start of a larger reversal.
At the time of writing, the Shiba Inu price is trading at around $0.00001226, down over 2% in the last 24 hours, according to data from CoinMarketCap.
Featured image from Getty Images, chart from Tradingview.com
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