SHIB Short Traders Face $1,000,000 Losses if This Happens

Since the beginning of the week of April 14th, Shiba Inu (SHIB) price has been staying within the $0.000021 to $0.000023 channel. After a week of consolidation, recent market movements suggest that SHIB bulls are preparing for a pullback.

As of this writing on April 19th, SHIB was trading just above $0.0000023. Could SHIB price be on the verge of a retest of $0.00003 as crypto investors point traders squarely to the potential gains from Bitcoin halving?

$9 million worth of SHIB tokens appear on Fly Off Exchange in 5 days

Shiba Inu While prices successfully avoided a major reversal below $0.00002 this week, the global crypto market lost more than $50 billion due to bearish headwinds from the escalating geopolitical crisis in the Middle East.

According to on-chain data, SHIB’s resilient price trend is due to investors choosing to hold on for future profits rather than selling into the FUD (fear of uncertainty and doubt) of a turbulent market. It is suggested that this is partially promoted.

The chart below from Coinglass tracks the net flow of SHIB tokens on the top 10 largest exchanges over the past seven days starting April 13th.

Shiba Inu (SHIB) price and exchange net flow | Source: Coinglass
Shiba Inu SHIB Price and Exchange Netflow | Source Coin Glass

The graph above shows that investors moved approximately $9 million worth of SHIB tokens from wallets hosted by the cryptocurrency exchange between April 13th and April 19th.

A negative flow of assets means that an investor withdraws more tokens into cold storage than the total number of tokens deposited on the exchange during the specified period. When this trend appears during a period of sideways price movements, it sends a positive signal for two main reasons.

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First, there will be fewer tokens readily available for trading on the exchange spot market, which will significantly reduce selling pressure.

This partially explains why Shiba Inu’s price has stabilized above $0.00002 this week while other mega-cap meme coins such as PEPE and Dogwifhat (WIF) have suffered significant declines.

Moreover, with SHIB price currently outperforming the broader trend in the memecoin market, strategic investors could potentially jump on the bandwagon in hopes of accelerating the breakout as the crypto sector enters a recovery phase. be.

While the entire crypto market battled bearish headwinds, losing more than $50 million in market capitalization this week, SHIB price successfully avoided falling below a critical value.

Shiba Inu Price Prediction: Bears could lose $1 million if SHIB regains $0.00025

Drawing insight from the $9 million currency outflow, SHIB price could rebound towards the $0.000030 region in the near term.

Coinglass’ liquidation map chart also supports this bullish Shiba Inu price outlook. This represents the value of active leveraged futures contracts at key price levels.

Currently, the number of leveraged positions on SHIB LONG exceeds SHORT, indicating that the majority of Shiba Inu derivatives traders are increasingly betting on an early price rebound.

Shiba Inu (SHIB) price prediction | Source: CoinglassShiba Inu (SHIB) price prediction | Source: Coinglass
Shiba Inu SHIB price prediction | Source Coin Glass

As shown above, if the price increases another 10% to regain $0.000026, the Shiba Inu SHORT trader risks losing $1.14 million in potential liquidation. If they choose to trigger their stop loss or close out their positions early, a large sell resistance wall could form in the $0.000025 area.

However, in comparison, the bulls have accumulated $2.09 million worth of leveraged LONG positions, which could all be liquidated if SHIB price falls below the key support level of $0.00002. Given that there are significantly more bull hides in the game, the chances of SHIB price moving towards $0.000026 now look higher.

If this scenario plays out as expected, the positive sentiment surrounding the 2024 Bitcoin halving event could push SHIB price further towards the $0.000030 region.

Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. We encourage our readers to conduct thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.

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