Unveiling the Shiba Inu Market Dynamics and Recent Volatility
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Shiba Inu’s Market Turmoil: A Deeper Dive into the 699,000% Liquidation Imbalance
The Shiba Inu cryptocurrency, a top meme coin, recently experienced a staggering 699,000% liquidation imbalance. This dramatic shift occurred as the prices plummeted, mirroring the broader downturn in the crypto market. This trend has re-ignited a bearish sentiment, with a majority of market participants feeling that the bears are currently dominating.
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Understanding the Causes Behind the Imbalance
According to Coinglass data, this massive imbalance stemmed from a significant disparity in the liquidation of long and short positions within a single hour. The SHIB price witnessed a sharp decline alongside the broader crypto market, influenced heavily by Bitcoin’s drop to a 24-hour low of $112,500.
During this tumultuous period, Shiba Inu’s price fell to $0.00001206 from an intraday peak of $0.00001264, clearing out a substantial number of long positions. Coinglass further reports that $425,230 worth of long positions were liquidated over 24 hours, in contrast to just $11,230 in short positions. This trend has fueled a cautious outlook among SHIB’s bullish investors, who are now adopting a wait-and-see approach. Currently, SHIB’s open interest has dipped by over 4% to $191.38 million, while derivatives trading volume decreased by 2% to $177.46 million.
Potential for Market Recovery
Despite these challenges, Shiba Inu shows signs of resilience. The current long/short ratio stands at 1.0838, suggesting a greater number of traders are taking long positions. This could potentially lead to a significant rebound if market conditions stabilize. The crypto market is currently facing heightened volatility in anticipation of Jerome Powell’s speech at the Jackson Hole Symposium on August 22, where investors are keenly awaiting any hints on future rate cuts.
A Surge in SHIB Burns by 2,196%
Data from Shibburn reveals an impressive 2,196% increase in Shiba Inu token burns over the past 24 hours, with 1.6 million SHIB tokens being permanently removed from circulation. However, the burn rate has decreased by more than 28% over the past week, with approximately 72 million tokens burned during this timeframe. An increase in token burns typically signifies a bullish trend for the meme coin, potentially leading to a supply shock as demand rises.
Integration with Chainlink
The recent surge in SHIB burns follows the integration of SHIB with Chainlink, enabling token burns across multiple networks. This development has garnered bullish sentiment among crypto analysts, including Javon Marks, who foresees a potential 150% rally for SHIB, potentially reaching $0.000032. Such a rally could mark the beginning of a more extensive market reversal.
At the moment, Shiba Inu is trading around $0.00001226, reflecting a decline of over 2% in the last 24 hours, as per CoinMarketCap data.
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