Shiba Inu (SHIB), the popular meme coin on the Ethereum network, recently displayed an unusual trading pattern marked by a significant imbalance in liquidations. Despite a clear downward trend in its price, short positions remained largely unaffected, raising intriguing questions about the market dynamics influencing this volatile cryptocurrency.
A Striking Imbalance in Liquidations
For an extended period, SHIB experienced a notable price depreciation where long positions faced substantial liquidations, while short positions remained remarkably resilient. Data revealed that during a full hour of price decline, long traders lost $3,950, yet not a single short position was liquidated. This one-sided trend continued, with daily figures showing long positions incurring over $408,000 in liquidations, starkly contrasting with just $23,990 from shorts. An even more pronounced asymmetry was observed over a 12-hour window, where long-side liquidations amounted to $218,940 against a mere $7,380 from short positions.
Decoding the Absence of Short-Side Squeeze
The lack of significant short-side liquidations, despite SHIB marking lower highs and a gradual price descent, points to several potential factors. One explanation could be that the overall short interest in SHIB was relatively small, meaning fewer outstanding short positions existed to be liquidated. Another possibility is that the price decline was exceptionally orderly and gradual, lacking the sudden, sharp volatility typically required to trigger mass liquidations of short sellers. It's also conceivable that many short sellers initiated their positions later in the downtrend, positioning themselves at a lower risk of immediate liquidation as the price continued its descent. This pronounced asymmetry is particularly noteworthy for a token like SHIB, often characterized by high retail investor involvement and generally volatile price action, making the market's current one-sided risk exposure an intriguing development.
