The total short liquidation in the derivatives market for Shiba Inu was approximately $50,000 in the last 24 hours as the token saw a small price recovery. The liquidation took place as traders who were betting on a price drop were forced to close their positions due to the opposite market movement.
Short Liquidations Dominate Daily Activity
Market data reveals that around $50,120 of the short positions were liquidated in 24 hours. The total number of liquidations in Shiba Inu derivatives stood at around $59,170, with short positions dominating the market.
Short positions comprised around 84.7% of the total number of liquidated positions, while long positions comprised a significantly smaller percentage of around $9,050. This is an indication that a significant number of traders had been positioned for a price decline before the rebound occurred.
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Price Rebound Triggers Liquidations
The liquidations occurred while the price of Shiba Inu was increasing, reaching approximately $0.00000631 during that time. When prices are rising against traders who have placed short trades, exchanges will automatically close those positions to prevent losses, resulting in liquidations. Liquidations can sometimes be a cause of volatility when the market is positioned in a certain way.
Trading Activity and Open Interest Increase
In addition to the liquidations, the trading activity surrounding Shiba Inu also saw a substantial increase. The spot trading volume of the token increased by around 112% in the last 24 hours to reach approximately $22.23 million.
The trading activity in the futures market also saw an increase, with the derivatives trading volume rising by around 109% to $148.3 million. At the same time, the open interest in the Shiba Inu futures contracts increased from around $54.51 million to $60.90 million.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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