Shiba Inu Team Urges Caution After $20 Million Liquidations

The Shiba Inu team has urged traders to be cautious following a wave of liquidations amounting to $20 million in 24 hours; $12.9 million of this was absorbed by longs. In the same post, the team called for more bulls and burns: "Please take care of your trades. We need bulls and more burns." Bets on growth still exceed bets on decline by 2.71 times, so SHIB longs remain at risk of another wave.

The team supported their call with futures data. The futures volume for the same period reached $49.3 million, while spot trading turnover was only $10.8 million: derivative activity is about 4.5 times greater than spot. In practice, short-term movements are driven by borrowed funds rather than direct token purchases, so small price fluctuations can cause disproportionately large liquidations. Shorts lost about $7 million, so the wave affected both sides, but longs accounted for about two-thirds of the damage. A strong bias towards longs works both ways: further decline could wipe out even more longs, and each forced sale adds pressure.

Exchange Flows

In 24 hours, 324.28 billion SHIB flowed into exchanges, while 232.21 billion left, resulting in a net inflow of approximately 92.07 billion tokens. The net inflow serves as an indicator of readiness to sell: coins on the trading platform can immediately enter the order book, whereas in self-custody, a transfer is needed for sale. The inflow comes at a weak moment for the token: over the year, SHIB has lost about half its value. However, it is modest compared to June, when whales sent 1.04 trillion SHIB to exchanges in a single day. Upcoming data will show whether these coins will be sold or simply remain on exchanges.

Currently, futures desks set the tone, not spot buyers, and this explains the Shiba Inu team's caution. The picture corresponds to a year of thin organic demand: Shibarium activity according to network data has collapsed. The call for bulls, by the way, echoes the team's August post.