A key indicator is flashing red for shiba inu (SHIB) as the recent price drop to two-month lows has shaken out leveraged bullish bets.
The indicator in consideration is the long-short ratio derived from the perpetual futures market. It measures the number of active longs or bullish bets relative to shorts, providing cues on market sentiment.
The ratio has dropped to 0.9298, indicating bearish sentiment among traders, according to CoinDesk’s AI insights. This follows the forced closure or liquidation of long positions worth over $1.8 million since June 12, according to data source Coinglass. Exchanges liquidate positions due to margin shortages. The dollar value of the shorts squeezed out during this period is less than $500,000.
Over the past 24 hours, the derivatives market has exhibited growing caution, with open interest decreasing by 2.14% to $145.33 million and long liquidations surging to $244,000, compared to just $57,000 in short liquidations.
SHIB’s price has dropped by 10% to $0.00001164 since June 12, according to data source CoinDesk. The minor recovery from Tuesday’s two-month low of $0.00001134 is providing bullish hints on short-duration price charts.
Key AI insights
- SHIB continues to hold support above the critical $0.00001100 level, indicating a potential trend reversal.
- Technical analysis reveals a minor bullish divergence in the daily RSI, with MACD and signal lines approaching a bullish crossover that could propel SHIB toward the 23.60% Fibonacci level at $0.00001390.
- Above-average volume confirmed buyer interest with the closing price of $0.00001170, suggesting stabilization above critical support.
- Hourly RSI indicates oversold conditions, potentially setting up for a technical bounce if the $0.00001168 support level holds.