Shiba Inu Rebound Triggers Billions of Tokens in Short Liquidations as Traders Reassess Market Direction

Shiba Inu staged a modest but impactful rebound in the cryptocurrency market this week, catching bearish traders off guard and triggering a wave of short liquidations across derivatives exchanges. The meme-inspired token climbed roughly 4.8 percent during the latest trading session, reaching around $0.00000631 as broader digital asset markets moved higher.

While the price move may appear relatively small on the surface, its consequences in the derivatives market were significant. Traders who had positioned themselves for continued downside were forced to exit their positions as the price climbed, generating millions of tokens in liquidations within a matter of hours.

According to derivatives data, approximately $59,000 worth of Shiba Inu positions were liquidated over the past 24 hours. The overwhelming majority of those losses came from traders betting against the asset’s recovery. Short positions accounted for roughly $50,000 of the total, representing nearly 85 percent of all liquidations recorded during the period.

At current market prices, those forced closures correspond to nearly 7.94 billion SHIB tokens removed from the derivatives market. The sharp imbalance between short and long liquidations illustrates how the recent rebound surprised traders who had expected the token’s downward trend to continue.

Bullish traders, by contrast, experienced comparatively limited losses. Liquidations among long positions totaled just over $9,000, indicating that most investors who anticipated upward movement remained aligned with the market’s direction during the rally.

The phenomenon was not limited to Shiba Inu. Across the broader cryptocurrency ecosystem, liquidations reached roughly $353 million during the same 24-hour window. Bearish positions again absorbed most of the damage, accounting for approximately $292 million, while long liquidations represented a much smaller share of the total.

The recent recovery follows a period of sustained pressure on Shiba Inu earlier this month. The token began stabilizing after finding support near $0.00000520 around March 8. Since then, it has climbed close to 20 percent, gradually regaining momentum after a prolonged decline.

Recent trading patterns suggest the asset may be entering a short-term recovery phase. If the current session closes in positive territory, Shiba Inu will have recorded seven daily gains within the past eight trading days, a streak not seen since September 2025.

Momentum has also been visible on the weekly timeframe. Over the past week, the token has gained more than 12 percent, marking its strongest weekly performance since early January, when prices rose by more than 22 percent.

Market participation appears to be strengthening alongside the price recovery. Open interest in Shiba Inu derivatives contracts has increased from roughly $54.5 million at the beginning of March to about $60.9 million, suggesting that traders are once again entering new positions.

Trading volumes have expanded as well. Spot market activity surged by more than 110 percent over the past 24 hours, while futures trading volume climbed above $148 million after increasing by roughly 109 percent.

Despite these improvements, market sentiment remains cautious. Order book data indicates a relatively balanced mix of buy and sell activity, suggesting that traders have yet to reach a clear consensus on the token’s next directional move.

Technically, Shiba Inu is now trading above an important resistance area near $0.00000590. Holding above this level could help sustain the current recovery in the near term.

However, the broader market structure still reflects a longer-term downtrend characterized by a series of lower highs. For a more decisive shift in sentiment, analysts suggest the token would need to break above the previous lower high near $0.00000725 recorded in mid-February. A move beyond that level, particularly if supported by strong trading volume, could signal the beginning of a more durable bullish reversal.