Shiba Inu 699,000% Imbalance Explained: Why SHIB Price Dropped and What Comes Next
The Shiba Inu 699,000% imbalance caught the crypto market off guard, sending shockwaves through SHIB traders. Data from Coinglass showed that long liquidations massively outpaced short liquidations within just one hour, causing bearish sentiment to rise. As the broader crypto market slid — with Bitcoin falling as low as $112,500 — Shiba Inu followed the drop, plunging to $0.00001206 from an intraday high of $0.00001264.
How the Shiba Inu 699,000% Imbalance Happened
According to Coinglass, more than $425,000 worth of long positions were wiped out in 24 hours, compared to only $11,230 in shorts. This sharp liquidation skew created the staggering imbalance figure.
The timing coincides with heightened volatility ahead of Jerome Powell’s Jackson Hole speech on August 22, which investors expect to clarify the Federal Reserve’s next steps on interest rates. The uncertainty has pushed traders to de-risk across crypto markets, amplifying Shiba Inu’s losses.
Impact on SHIB Open Interest and Derivatives
SHIB’s open interest dropped 4% in the last 24 hours to $191.38 million, signaling reduced speculative appetite. Meanwhile, derivatives trading volume fell 2% to $177.46 million.
Despite this cooling activity, the long/short ratio remains at 1.0838, meaning more traders are still betting long than short. If market conditions stabilize, this tilt could fuel a sharp rebound.
Shiba Inu Burns Skyrocket 2,196%
On the positive side, Shiba Inu token burns have surged 2,196% in the last day, with 1.6 million SHIB removed from circulation. While burns are down 28% on the week, the recent spike is tied to the SHIB-Chainlink integration, which enables burns across multiple networks.
Historically, rising burn activity has been bullish for SHIB, as it reduces supply and builds pressure for a supply shock. Analysts suggest that if demand holds steady, the latest burn surge could help stabilize prices.
Analyst Outlook: Bullish Case for SHIB
Despite near-term pressure, analysts like Javon Marks remain bullish. Marks recently projected a 150% rally toward $0.000032, suggesting that Shiba Inu could break out once the current wave of liquidations subsides.
This sentiment echoes previous rebounds where SHIB recovered strongly after similar long wipeouts, with bulls returning quickly once volatility cooled.
The Bigger Picture: Market Volatility Ahead
The 699,000% imbalance is another reminder of how meme coins can swing sharply with macro conditions. With Powell’s Jackson Hole remarks looming, traders should expect more volatility across crypto assets, especially those like Shiba Inu that have high leverage and speculative activity.
Key Insight
The Shiba Inu 699,000% imbalance highlights how fast liquidations can shift sentiment in meme coin markets. While long traders took the brunt of losses, skyrocketing burns, a positive long/short ratio, and analyst forecasts point to a potential rebound once macro uncertainty clears.
