#TopContentChallenge#   Shiba Inu Price Drop Could Lead to $50 Million in Liquidations.

SHIB USD has experienced a significant price drop over the past week, sparking bearish sentiment among traders. This has triggered a wave of selling pressure in the market.

However, if SHIB recovers, it could lead to significant losses for short traders betting against the altcoin.

Shiba Inu Traders Should Be Cautious

The liquidation chart reveals an interesting development: If Shiba Inu recovers from its 10% loss, it could trigger a short liquidation of more than $52 million. Short sellers are betting on a decline, but if SHIB recovers, these traders will face significant losses.

As traders exit their short positions due to losses, the market is likely to see an increase in buy orders, which could push SHIB's price higher. This scenario would be particularly beneficial for SHIB holders if the altcoin rebounds and confirms the bullish outlook for the token.

However, broader market signals raise some concerns. Active addresses for Shiba Inu have decreased by 36% in the last 48 hours. This suggests that investors have lost hope of a rapid recovery for the altcoin and are rapidly exiting their positions.

The decline in active addresses reflects a lack of confidence in the altcoin's short-term prospects. As more investors exit, it becomes more difficult to generate the buying pressure necessary to trigger a recovery.

SHIB Price Must Break Through Resistance

The price of Shiba Inu is trading at $0.00001407, just below the $0.00001435 resistance level. The altcoin is facing mixed signals, with both bearish and bullish factors playing a role in its price movement.

A potential recovery requires a break above the key resistance level at $0.00001435.

If SHIB remains within the price stagnation range of $0.00001435 and $0.00001317, traders will avoid liquidation risks. This sideways movement will keep the altcoin in neutral territory, allowing it to avoid sudden price fluctuations in the short term.

However, if the price of Shiba Inu breaks the $0.00001435 resistance and flips it into support, SHIB could potentially drop back to the $0.00001553 level. This would indicate a 10% recovery and invalidate the current bearish sentiment, shifting the outlook to a more optimistic tone.