Shiba Inu holds $0.000005 support after record short squeeze

3 min

Shiba Inu trades near $0.00000515, up 2.85% day-over-day and 11.8% week-over-week. The move follows a market-wide short squeeze tied to a large liquidation event and renewed policy optimism, rather than a SHIB-specific catalyst.

Market Context: Record Short Liquidations and Policy Tailwind

On Wednesday, crypto markets saw about $3.38 billion in liquidations across roughly 192,002 traders. Short positions accounted for about $3.1 billion, the largest short-liquidation wave since 2021. Long liquidations totaled about $275.45 million. The imbalance pushed prices higher as shorts became forced buyers. Sentiment also improved ahead of the CLARITY Act’s September 15 procedural vote, lifting altcoins broadly. SHIB’s rise aligns with this beta-driven rebound.

BREAKING: Crypto markets officially post their 7th largest liquidation event in history, with $3.5 billion in levered positions liquidated in 24 hours.

In 24 hours, crypto markets added +$280 billion in market cap.

That's +$12 billion in market cap per hour for 24 hours… pic.twitter.com/zpEsLeRhp9

— The Kobeissi Letter (@KobeissiLetter) August 20, 2026

Key Levels: $0.0000048 Retest, Scenarios Into $0.0000058

Technical setup: SHIB broke a descending channel on the 4-hour chart and is retesting the $0.0000048 area, a pivot that separates continuation from a failed breakout.

Bull case: sustained trade above $0.00000500 targets $0.00000550 and $0.00000583.
Base case: range-bound action between $0.0000046 and $0.0000050 as the market absorbs the squeeze.
Bear case: sub-$0.00000446 exposes $0.00000410. The August range of $0.0000041 to $0.0000058 frames these outcomes.

SHIBUSDT 4h chart showing breakout and key levels

Source: SHIBUSD / Tradingview

Rotation Flows: Maxi Doge and Early-Stage Speculation

With SHIB at a multi-billion market cap, further doubling requires large net inflows. Some traders are rotating recent gains into earlier-stage tokens, consistent with increased activity in Solana meme coins.

Maxi Doge promotional image

Maxi Doge ($MAXI), an Ethereum ERC-20 meme token, promotes holder-only trading competitions and a leaderboard. The presale has raised $4,846,355.70, with the token at $0.0002834 and staking offered at a dynamic APY. A Maxi Fund treasury supports liquidity and partnerships. Branding leans into “1000x leverage” and gym-themed meme culture.