Shiba Inu Price Slips — Is a $50M Liquidation Storm Brewing?

SHIB may trigger $52M in short liquidations with a 10% price rebound.

Active addresses dropped 36%, raising doubts about a quick Shiba Inu recovery.

Breaking $0.00001580 could spark a sharp rally toward the $0.000026 target.

Shiba Inu has hit a rough patch, and traders are feeling the pressure. Over the last week, the token lost close to 10% of its value, dragging sentiment into bearish territory. This drop has triggered a new wave of selling, but the story doesn’t end there. If SHIB starts climbing again, the market could flip fast—especially for short traders. A recovery could liquidate more than $52 million in bearish positions, potentially unleashing a massive buying frenzy.

Short Sellers Could Face a Price Reversal Nightmare

Right now, Shiba Inu trades at $0.00001407, just under a critical resistance level at $0.00001435. Short sellers are betting that the decline continues, but that might be a dangerous gamble. If the price rebounds even slightly, liquidation alarms could go off. More than $52 million hangs in the balance, and once those short positions start getting squeezed, the market could explode with buy orders. These rapid exits could add fuel to a SHIB rally, trapping bearish traders and boosting the price in the process.

Liquidations trigger automatic buybacks, which help push the price higher in a chain reaction. This pattern has played out before, and it often ends in a dramatic price spike. However, recent on-chain data reveals a concerning trend. The number of active SHIB addresses dropped by 36% over the past 48 hours. That steep decline suggests a portion of holders may be pulling out early, fearing that a strong recovery may not come soon.

Resistance Level Holds the Key to SHIB’s Next Move

For now, SHIB hovers just below a resistance wall that has already pushed it back once. The altcoin recently touched $0.00001587 before falling to its POC (Point of Control) around $0.00001329. A decisive break above $0.00001435 could set the stage for a new upward path, targeting $0.000018 next. The technical outlook isn’t all negative—SHIB’s Chaikin Money Flow indicator has hit levels not seen since December, and the Relative Strength Index (RSI) remains comfortably under the overbought line.

These signs suggest that momentum could return quickly if buyers step in with confidence. Analysts at MRC believe SHIB has the potential to double from its current price, reaching as high as $0.000026 in the coming weeks. That forecast depends heavily on breaking through the $0.00001580 zone and maintaining volume above resistance.

SHIB stands at a critical price point with bullish and bearish forces battling for control. A recovery could liquidate millions in shorts, creating buying pressure and a potential breakout. Technical indicators hint at more upside, but falling address activity clouds the picture. All eyes now turn to resistance—because that’s where the next big move will begin.