Amid the broad crypto market resurgence, which started about two days ago, Shiba Inu has also flipped to the positive side of the market.
However, the leading memecoin has witnessed an unusual silence in its derivatives market over the last hour, according to data showcased by Coinglass.
The data shows that Shiba Inu experienced a mild, one-sided liquidation on September 12, where it recorded a total liquidation of just $20.87 in one hour. Nonetheless, Shiba Inu delivered a surprising twist in this hourly liquidation trend, as its bears were left with no record to account for.
Specifically, SHIB recorded $0 in short liquidations during the period. This means that the overall liquidation of $20.87 recorded during the period was catered for by only long traders.
Is SHIB momentum still intact?
While situations like this have often had the crypto community speculate bullish outlooks for the concerned cryptocurrency, the trend has only sparked curiosities among market watchers, as they keep a close eye on SHIB’s price action in relation to the unusual derivatives activity.
Notably, the rare setup in Shiba Inu liquidation over the last hour suggests that traders betting against the meme token’s potential upsurge are currently out of play.
Scenarios leading to this situation could be traced to either little-to-no interest in the asset’s derivatives market (which means no short positions were opened at all), or the token’s price action during the period had moved in favour of short positions, causing them to suffer no liquidation during the period.
While the trend signals reduced downward pressure on Shiba Inu, the extremely low long liquidation also highlights that bullish positions remain intact, with only a tiny fraction of bullish traders being wiped out of the market.
You Might Also Like
While SHIB has continued to move on the upside trajectory, flagging bullish on-chain patterns as its price records a decent 2% surge in the last 24 hours, the absence of short liquidations could be interpreted as a sign that Shiba Inu bears have already exited the market.
On a more bullish note, the exiting bear traders might be due to exhaustion or anticipation of a potential price uptrend. With SHIB managing to avoid any major short squeezes or downside liquidation spikes, the token appears to be showing a neutral-to-bullish trend.
While investors are optimistic about SHIB’s long-term potential, they are positive that a persistence in the lack of active shorts could open the door for more upside movement for SHIB, posing it for a major price breakout in the near term.