On Thursday, for the first time, Shiba Inu’s perpetual contracts reached an All-Time-High of $5 Billion, a 78x rally compared to October 1st as price put on a spirited bullish run that saw the token gain by over 45% on the day and 300% in just four days.
A perpetual contract otherwise known as a perpetual swap is similar to a traditional stock futures contract. It allows investors to buy an underlying asset’s value without necessarily owning it. Perpetual contracts have increasingly become popular in crypto and can neither expire nor have a settlement date allowing traders to long and short positions at will.
According to data from CoinMarketCap, October 7 also recorded the largest number of inactive token holders in the network which reached 720,606 with 14,645 holders being active in the last 24 hours.
During October’s first week rally following a little help from Musk, Shiba also managed to become the 12th largest cryptocurrency by market cap, a position that it has since relegated to Uniswap, falling back to number 20 in the last twenty-four hours.
Shiba Sheds Gains
A spike in price in the last 4 days has however seen the largest SHIB addresses by balance reduce their holdings, a factor that is synonymous with taking profits after a sustained bullish rally.
Upon reaching a high of $0.00003528, the price recoiled on Thursday, giving back just over 20% of its gains to trade at just below $0.00002889 at press time.
Thursday’s sell-off also saw the largest number of liquidations in the entire history of SHIB at $11.74M(389.74B Shib) wiped off in under 24 hours according to data from bybt.com. This liquidation figure also placed SHIB third behind Bitcoin and Ethereum for the first time.
Bulls gather steam as dip-buys surge
Despite the sell-off, SHIB’s bullish run still seems to be far from over as more investors scramble to buy the dip in the hope that price will print a new high. In the past three days, the token has been attracting a lot of attention even trending for two consecutive days on Twitter. Consequently, more buyers seem to have onboarded the flight as daily trading volumes have surged by 24.94% in the last 24 hours to sit at just over $14.4B.
For now, SHIB is expected to print a price squeeze pattern during which enough long orders can pile up to thrust price higher.