- SHIB rebounded 5% to $0.00000572, reversing a week of losses.
- Short sellers faced $38,680 in liquidations, fueling a strong momentum shift.
- Technical indicators suggest rising pressure, with resistance at $0.00000587 and support at $0.00000526.
Shiba Inu staged a sharp rebound on Tuesday, reversing a week of losses that had weighed heavily on the token. The price climbed to an intraday high of $0.00000575, catching many bearish traders completely off guard. At the time of writing, SHIB trades at $0.00000572, marking a 5.17% gain over the past 24 hours. The rapid move triggered a wave of liquidations across the derivatives market, creating a noticeable short-term shake-up in the crypto community.
Short Sellers Bear the Brunt
The recent SHIB rally caused a major disruption in short positions. Data shows that total liquidations reached $48,260 during the surge, with $38,680 of that coming from short positions. Long liquidations accounted for just $9,580, highlighting the imbalance. Traders betting against Shiba Inu were caught off guard as prices reversed sharply, forcing them out of their positions.
This short squeeze extended beyond SHIB, impacting the broader crypto market. Overall, $327 million in positions were liquidated, with $200 million coming from shorts. This pattern shows that bearish bets across multiple tokens were broadly unwound during the recovery. Risk appetite returned as traders reassessed recent sell-offs, and major cryptocurrencies gained ground alongside SHIB. The market-wide shift in sentiment demonstrates how quickly conditions can change after a prolonged decline.
Shiba Inu has now fully recovered from its weekly losses. Over the past seven days, the token has gained 8.02%, erasing the damage from three consecutive weeks of decline. Technical indicators suggest more movement could be on the horizon. Weekly Bollinger Bands are narrowing, forming a pattern known as a squeeze, which often precedes a strong price move in either direction. The recent contraction suggests that SHIB may be building pressure ahead of another decisive shift.
Key Levels and Market Outlook
Analysts are now focused on key resistance and support levels. Immediate resistance lies at $0.00000587, with a secondary target at $0.00000653. On the downside, $0.00000526 serves as the closest support. A decisive break above resistance could open the door for additional gains, while a failure to hold support may trigger renewed selling pressure.
On-chain and derivatives data indicate rising interest in SHIB following the rebound. However, market conviction remains cautious. Traders appear to be waiting for clearer directional signals before committing to larger positions. Momentum from the short squeeze could drive prices higher in the short term, but sustained gains will require fresh buying interest from both retail and institutional participants.
Shiba Inu’s rebound highlights how quickly sentiment can shift in the crypto market. The short squeeze caught many off guard and injected momentum into SHIB. Investors are watching key levels closely while the broader market shows renewed risk appetite. The token’s performance this week demonstrates how sudden reversals can trigger dramatic price action.
