Shiba Inu derivatives traders have swung from heavy short bets to net long positions over the past week, pushing the meme coin's price above $0.00000660. Net long positions surged past 400 million by May 11, a stark reversal from roughly 200 million in shorts just days earlier, according to exchange data. The shift began around May 6 and turned positive by May 9.
The Derivatives Flip
Open Interest in SHIB derivatives climbed from just above 5 billion on May 5 to over 6 billion at the time of reporting. The flip from a short-biased market to a long-biased one reflects a sudden change in trader sentiment. Market watcher CW noted: 'The upward momentum of $SHIB is increasing explosively.'
Price Action and Support Levels
SHIB's price rose from $0.00000615 to above $0.00000660 by May 11, a gain of roughly 6.5% over the past week. The price has formed a pattern of higher lows and higher highs since May 10, signaling buyer control. Key support now sits between $0.00000665 and $0.00000670. If that level holds, the rally could extend. If it fails, traders expect a sharp correction.
Risk of Forced Liquidations
With Open Interest elevated and long positions stacked, the setup carries risk. A slowing of the price move could trigger forced liquidations, especially if the support range breaks. The same leveraged bets that drove the rally could amplify losses in a downturn.
The immediate question is whether SHIB can maintain its footing above $0.00000665 through the end of the week, or whether the accumulation of longs will prove unsustainable.
