SHIB's 9,000% Liquidation Imbalance: A Flow Analyst's Take on the Death Cross Collapse

The technical breakdown was confirmed on Thursday, with Shiba Inu hitting a death cross on short time frames. This pattern, where the 50-day moving average falls below the 200-day average, signals a powerful bearish momentum shift on the 30-minute chart.

The immediate price impact was severe. In a single 24-hour period, SHIB crashed from $0.00000668 to $0.00000618, breaching a critical technical support level at $0.000006672. This breakdown occurred amid a broader crypto selloff that erased nearly 7% of total market cap, amplifying the selling pressure.

The sell-off was not isolated to SHIB. The wider market saw $1.06 billion in liquidations in the past day, with bullish positions accounting for the vast majority. This synchronized stress across global markets, driven by uncertainty over interest rates and a stronger dollar, created a perfect storm for the price collapse.

The 9,000% Liquidation Imbalance

The death cross was followed by a catastrophic imbalance in leveraged bets. In just 12 hours, long positions in SHIB futures were liquidated at a rate 8,972% above short positions. This created a staggering 9,000% liquidation imbalance, with approximately $18,710 in longs wiped out versus a mere $208.85 in shorts.

This extreme skew is a direct signal of broken buyer confidence. It shows that the remaining market participants were overwhelmingly short, leaving the price with no sustained bid support. The broader market saw similar stress, with over $800 million in leveraged positions liquidated in 24 hours as the selloff accelerated.

The setup is now primed for further volatility. With so many longs eliminated and open interest falling, the market has cleared out a layer of overextended bullishness. This creates a fragile base where even modest selling pressure can trigger a new wave of liquidations, testing the depth of remaining market interest.

Liquidity and the Path to Support

The market is adjusting its leverage. Total open interest has fallen to $103 billion, a clear sign that the extreme over-leveraged positions that amplified the crash are being unwound. This reduction clears the path for a more stable, if fragile, price discovery process.

The immediate technical battle is at a critical support zone. SHIB is trading near $0.00000667, a level that was breached earlier this week. A break below this zone would likely trigger secondary liquidations, as stop-loss orders and margin calls activate in a lower-liquidity environment. The next key support level is at $0.000005, a major psychological and technical floor that will be tested if the current downtrend continues.

On the spot market, volume tells a story of selling pressure. Trading volume rose 11.99% to $180.43 million over the past day, but the flows were overwhelmingly sell-side and failed to reverse the decline. This indicates that while there is still activity, the market lacks the buying conviction needed to stabilize the price.