Shiba Inu Short Squeeze Leaves Bears Reeling
Shiba Inu has surged more than 35% in just one week, surprising investors who had been leaning short. The token's price has been stuck under a descending trendline since December 2024, but this week's candle is the first real challenge to that structure.
The weekly chart shows SHIB topped out at $0.0000340 in December 2024 and then began a long decline, with each bounce weaker than the last. However, this week's price action has been testing the trendline off those 2025 highs, but hasn't closed above it yet.
A look at the derivatives data reveals that $2.32 million in SHIB futures positions got liquidated over the past day, with most of it being shorts getting dragged out. This is a clear sign of a short squeeze, where investors who had bet against the token's price are now being forced to cover their losses.
On the 15-minute chart, the move breaks down into two legs, with SHIB first jumping from $0.0000042 to around $0.00000504 before pulling back and then breaking out again. The flag pullback barely dented the first leg before buyers came back in.