Cryptocurrency investors have shorted Shiba Inu, worth nearly $52 million, which could soon trigger a new round of price dip through liquidations. The latest data from Coinglass shows that short positions worth $51.96 million are awaiting liquidation this week. However, if SHIB surges even 10% to 15% in value, the short traders could face substantial losses. That’s not the case, as the dog-themed token is already down 6.1% as of Tuesday.
The weight of the short-selling orders is outweighing that of buy orders and could make SHIB head further south. Chances of Shiba Inu rising in value remain slim, as the token has not surged in value recently. Its price has stagnated for nearly four months, which has led investors to bet on short positions. If the $52 million worth of liquidations goes through this week, Shiba Inu could see a major price decline.
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What Next For Shiba Inu After Liquidations?
If the $52 million worth of liquidations are initiated, Shiba Inu’s price could fall to the $0.000011 level. If retail investors indulge in panic selling, SHIB could also add an extra zero in the charts. Its price is now moving around the $0.000013 mark on Tuesday and is down 6% already.
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However, if Shiba Inu adds an extra zero due to liquidations, it could open up buying opportunities for traders. SHIB would be available at a further discount, making long-term holders accumulate more in their wallets. The price could have bottomed out, and investors could stand a chance of gaining some profits.
Data from Coingecko shows that SHIB has not dipped below the $0.000007 range since September 2023. It has bounced back strongly every time it adds a fifth zero in the indices. Therefore, accumulating Shiba Inu at its lows could be a wise decision as the liquidations could pull its price down.
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