Shiba Inu (SHIB) defied the usual market dynamics by maintaining its gains despite a severe liquidation imbalance that typically signals bearish pressure.
The meme token was trading around $0.00000721, up 2.12% on December 26.
This gain occurred even as long positions faced massive liquidations in the derivatives market.
What happened
CoinGlass data showed that approximately $10,590 in long positions were liquidated over a four-hour period.
Short positions only suffered $213.72 in liquidations over the same period.
This ratio created a 5,000% imbalance in favor of shorts compared to longs.
Such unilateral liquidations typically indicate that leveraged buyers are caught in forced sales.
Price action on Binance showed a rapid upward movement followed by consolidation near session highs.
This movement contrasts with typical patterns where heavy liquidations of long positions lead to prolonged price declines.
Also read: Solana's USX Stablecoin Briefly Crashes to $0.80 After Liquidity Drain on DEXs
Why this matters
This resilience suggests that cash buyers intervened after forced sales purged the market of leveraged positions.
Classic 'short squeeze' dynamics do not apply here, as shorts have suffered very few losses.
Instead, this purge seems to have simply reset cluttered leveraged positions without causing spot prices to drop.
The meme coin market experienced several waves of liquidations during the holiday period.
Previous data from U.Today showed that SHIB recorded $103,730 in long position liquidations against only $895 in shorts over a 24-hour period ending December 24.
If SHIB maintains its support around $0.0000072, traders may view this imbalance as a reset of leverage.
A break below $0.000007 could trigger deeper sales and invalidate the current price stability.
Next read: Bitcoin Rebounds Above $88,000 as Holiday Trading Pressures Major Cryptocurrency Markets
