Shiba Inu (SHIB) has experienced a significant price decline over the past 24 hours, coinciding with a broader market sell-off with substantial liquidations across various cryptocurrencies.
The primary factor behind the current market slump appears to be the sustained selling pressure surrounding Bitcoin. Following massive selloffs, Bitcoin dropped by 5% on July 4.
Further unsettling the market, Arkham Intelligence, a blockchain intelligence platform, reported that the Mt. Gox trustee recently initiated test transactions in preparation for the highly anticipated early July repayments to creditors.
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This upcoming distribution of a significant amount of Bitcoin (47,228 BTC worth approximately $2.7 billion) has triggered anxieties among investors, leading to increased selling activity. The subsequent drop in Bitcoin’s price below the $55,000 threshold has had a cascading effect, dragging down the price of Shiba Inu and other altcoins.
The decline in SHIB’s price has resulted in substantial liquidations for investors holding long positions. Experts have recommended SHIB as a good long-term investment, but this downturn must have shaken the confidence of some with long positions.
Many investors who had placed buy orders (long positions) on SHIB anticipated that certain price levels would hold as support. However, the breaching of these support levels, including $0.000015 and $0.000014, triggered automatic liquidations of these long positions to minimize losses.
Data from Coinglass, a crypto derivatives platform, reveals that SHIB liquidations surpassed $1.6 million this morning alone. Over 95% (approximately $1.54 million) of these liquidations stemmed from long positions. This represents the highest daily total for SHIB long liquidations in the past four months.
It’s important to note that while significant for SHIB, these liquidations are relatively modest compared to the broader market. Over the past 24 hours, SHIB liquidations totaled $2.31 million, representing just 0.3% of the total market liquidations valued at $679 million. Bitcoin holds the highest liquidation figure at $226.94 million, followed by Ethereum at $166.48 million.
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SHIB is also facing selling pressure from whales and shark investors, adding to the effects of Bitcoin’s decline. Santiment, an on-chain data analytics platform, indicates a gradual decrease in the holdings of wallets containing between 10 million and 1 billion SHIB since the beginning of June. This suggests that these larger investors have been offloading their SHIB holdings, contributing to the downward price movement.
At press time, Shiba Inu (SHIB) is trading at $0.00001311, down about 15% over the past 24 hours. While the broader market sentiment appears bearish, this decline could be a significant buying opportunity for SHIB investors.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Times Tabloid is not responsible for any financial losses.
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