The meme-based cryptocurrency Shiba Inu (SHIB) faced extreme selling pressure in the last few months after a retail frenzy pushed the digital asset’s price to a record high of $0.000088 in October 2021. CoinMarketCap’s recent data shows that the market cap of Shiba Inu has dropped below $15 billion, the lowest level since 12 January.
Shiba Inu and Dogecoin saw substantial interest from retail and institutional investors.
During the latest week, SHIB’s biggest competitor Dogecoin (DOGE), witnessed a decent spike of more than 10% after Elon Musk, CEO of Tesla, announced the acceptance of DOGE. In 2021, the growth of DOGE and Shiba Inu remained in tandem as both meme coins saw substantial interest from retail and institutional investors. However, during the last few weeks of the last year, the crypto market correction caused a massive drop in the valuation of both cryptocurrencies. DOGE and SHIB are down by approximately 70% from their respective all-time highs. SHIB also lost its spot in the list of the world’s top 10 cryptocurrencies by market cap and slipped to 13th position due to the latest sell-off.
Sellers increase their short positions across the crypto market.
In addition to Shiba Inu, sellers have increased their short positions across the crypto market. According to Santiment’s data, BNB, ANKR, SIA, AXS, and XEM witnessed a sharp rise in short trading positions. “We’re seeing a notable rise in leveraged short positions across different crypto assets currently. Average exchange funding rates are negative for altcoins such as ANKR, XEM, SIA, XMR, AXS, DGB, & BNB. If these shorts are liquidated, it can lead to major price spikes,” Santiment tweeted.