SHIB's Thursday Surge Forces $3.1B in Short Liquidations, Most Since 2021

Early Thursday, Shiba Inu reversed a slide that had pressed it to $0.00000443 the previous day, climbing to $0.00000502 before easing back to trade near $0.00000495 at the time of writing. The turnaround capped a period of roughly 10% gains over seven days as the broader crypto market snapped back, with the Shiba Inu token rallying sharply. The sharp upswing caught bearish positioning off guard, and derivatives data shows total liquidations reached $3.38 billion across 192,002 traders during that window. Forced short closings accounted for $3.1 billion of the total, the largest short-side liquidation event since Shiba Inu's 2021 all-time high. Long liquidations remained a distant $275.45 million, a lopsided breakdown confirming that the rally was powered by short covering rather than fresh long leverage. Set against the October 10, 2025 crash, which produced more than $19 billion in total liquidations, Thursday's overall number was smaller, but the short-only figure of $3.1 billion exceeded the $2.47 billion in shorts flushed out that day. Regulatory expectations reinforced the recovery. Senate Banking Committee Chair Tim Scott told the SALT conference that the Clarity market-structure bill has a strong chance of advancing in September, with a procedural vote expected on September 15, while a recent White House meeting with crypto industry representatives added to calls for clearer market rules. The bill is designed to give market participants a more defined legal framework, an outcome the industry has long sought. A backdrop of strengthening liquidity in the US Treasury market further supported risk appetite. Shiba Inu, the meme-themed altcoin, also gained a fresh access point: UEX US opened SHIB/USDT trading together with a 4.5% annual reward program, SHIB-collateralized loans and fiat on-ramps through PayPal, bank transfer and card purchases. That listing broadened the token's reach beyond trading into custody and usage just as its price recovery was taking shape.

After opening the session near $0.00000474, Shiba Inu pushed roughly 4% higher and lifted its market capitalization by about $425 million, putting the token near $0.00000493 and back in touch with a resistance band that has capped upside attempts since the start of August. The move marked a clear departure from the low-volatility trading that dominated the first half of the month, with momentum indicators turning up and volume expanding alongside the green candle. Reclaiming its shorter-term moving averages near $0.00000450 and $0.00000460 was the key technical development; a confirmed break above the $0.00000489–$0.00000500 zone would place Shiba Inu above still another significant moving average and establish the first convincingly higher short-term trading range in months. The daily RSI has climbed from below 50 to roughly 61 without reaching the overbought threshold of 70, leaving room for additional upside. Momentum, in other words, is supportive but not yet stretched. On-chain data, however, remains mixed. Total exchange netflow is still deeply negative at about 207.3 billion SHIB, and exchange reserves have slipped 0.24%, both of which reduce near-term sell-side availability. Yet total inflows reached about 523.1 billion SHIB, and the seven-day mean exchange inflow rose 23.8% — a sign that selling pressure could re-emerge if those tokens are eventually moved to exchanges for disposal. Address activity is expanding in tandem with price, with active and receiving addresses up roughly 1.2%. The breakout therefore carries valid technical support, but the token's price structure suggests it is still too soon to declare a complete trend reversal: at $0.00000574, Shiba Inu remains well below its long-term moving average. The immediate threshold for bulls is $0.00000500. Holding above it could pivot attention toward $0.0000055–$0.00000575, while a rejection would put the recently reclaimed $0.00000460–$0.00000450 region back under pressure and could render the $425 million expansion just another short-term relief rally.

COINOTAG's proprietary 42-indicator composite S/R scoring engine rates Shiba Inu's immediate resistance at 55/100, driven primarily by the 0.382 Fibonacci retracement, while the nearest support scores 47/100 on the 0.236 Fibonacci retracement. Positioning leans mildly constructive: perpetual funding rates sit at 0.0056%, reflecting moderate long demand rather than crowding, and the Fear & Greed index at 62 (Greed) confirms firm sentiment. With RSI at 59.46 and a neutral MACD signal, the model still classifies the trend as sideways. A decisive break above $0.00000500 would open the path toward $0.0000055–$0.00000575; rejection, by contrast, would put the $0.00000460–$0.00000450 floor in contention and invalidate the bullish thesis, exposing Shiba Inu to renewed bear-market pressure. That configuration has held since Thursday's early-session reversal.