Shiba Inu (SHIB) climbed more than 12% as buyers returned aggressively to the cryptocurrency market, pushing the meme coin toward the closely watched $0.000005 level. The move came as a broader crypto rally triggered one of the largest waves of short liquidations recorded in the market since 2021.

SHIB rose from $0.00000443 to an intraday high of $0.00000502 before easing slightly to trade around $0.00000495. The token still showed a gain of roughly 10% over seven days, underscoring the strength of the recent rebound. Launched on Ethereum in August 2020 as a Dogecoin-inspired meme project, SHIB has since grown into one of the largest meme coins by market capitalization, and its price moves are closely followed as a read on sentiment across the meme coin sector.

The rally was accompanied by an extraordinary wave of forced liquidations. Approximately $3.1 billion worth of short positions were liquidated across the cryptocurrency market, making the event the largest short-liquidation wave in records dating back to 2021.

For Shiba Inu, the development was especially notable because the token’s push toward $0.000005 coincided with a sharp increase in market-wide buying pressure. As traders betting against higher prices were forced to close their positions, the resulting buy orders added further momentum to an already accelerating rally.

$3.1 Billion in Short Liquidations Fuels Crypto Rally

Data from CoinGlass, a platform that aggregates crypto derivatives data, showed that total cryptocurrency liquidations reached approximately $3.38 billion across 192,002 traders.

Short positions accounted for roughly $3.1 billion of the total, while long liquidations stood at approximately $275.45 million. The wide gap between the two figures showed how heavily the latest market move affected bearish traders. Liquidations occur when exchanges forcibly close leveraged futures positions after losses exhaust a trader’s posted margin, a dynamic that becomes amplified during fast, one-directional market moves.

The scale of the short liquidations was also notable when compared with the cryptocurrency market’s major October 2025 crash. That earlier event generated more than $19 billion in total liquidations, including approximately $2.47 billion in short positions.

The latest episode was different. Instead of long traders bearing most of the forced closures, bearish positions accounted for the bulk of the liquidations. As cryptocurrency prices moved higher, traders who had positioned for further declines were increasingly forced to buy back their positions.

That process can create a short squeeze. When a large number of short positions are closed during a rapid price increase, traders are effectively required to purchase the assets they had previously bet against. Those additional purchases can accelerate an upward move and encourage other market participants to join the rally.

Shiba Inu benefited from that broader market dynamic as its price approached $0.000005.

SHIB Gains Momentum as Market Sentiment Improves

The latest Shiba Inu price increase should not be viewed entirely as an isolated move within the meme coin sector.

SHIB was part of a broader cryptocurrency recovery that pushed prices higher across the market. The unusually large short-liquidation figure indicates that leverage played an important role in amplifying the rally.

For SHIB traders, the $0.000005 area has therefore become an important psychological price level.

The token briefly moved above that threshold when it reached $0.00000502 before retreating toward $0.00000495. A sustained move around or above that level could become an important test of whether buyers can maintain control after the initial short squeeze fades.

At the same time, traders may continue watching the relationship between spot buying, derivatives activity and liquidations. A rally driven primarily by forced short closures can lose momentum once the positions have been cleared, making follow-through buying increasingly important.

U.S. Crypto Regulation Adds to Market Optimism

Improving sentiment around cryptocurrency regulation also provided another source of support for digital assets.

U.S. lawmakers are considering market structure legislation intended to establish clearer rules for the cryptocurrency industry. Senate Banking Committee Chairman Tim Scott expressed confidence in the prospects of the CLARITY Act during the SALT conference.

The bill, formally the Digital Asset Market Clarity Act, is designed to divide oversight of digital assets between the Securities and Exchange Commission and the Commodity Futures Trading Commission. The House passed its version of the legislation in July 2025 in a 294–134 vote, leaving the Senate as the remaining step in the legislative process.

Scott indicated that the legislation could advance in September, with a procedural vote expected on September 15.

Regulatory clarity remains an important issue for the broader cryptocurrency market because clearer rules could potentially provide greater certainty for exchanges, financial institutions, investors and digital asset companies.

Although regulatory developments were not directly responsible for SHIB’s 12% move, a more constructive policy environment can contribute to improving overall market sentiment and investor confidence.

UEX US Expands Shiba Inu Trading and Utility

Shiba Inu also gained additional market access through UEX US, which expanded its support for the cryptocurrency.

The platform added SHIB/USDT trading and introduced SHIB-backed loans, payment options and a rewards program offering 4.5% annual returns.

Users can also purchase SHIB through PayPal, bank transfers and card payments on the exchange.

Greater accessibility can make it easier for users to obtain and use SHIB, potentially expanding the range of participants interacting with the token. The development comes as Shiba Inu continues to evolve beyond its original identity as a meme-based cryptocurrency.

However, additional exchange services do not guarantee a sustained price increase. SHIB remains exposed to the same volatility, liquidity conditions and market-wide risk factors affecting other digital assets.

What Comes Next for Shiba Inu Price?

The immediate focus for SHIB traders is whether the token can maintain its position near the $0.000005 threshold after the initial short squeeze.

The move from $0.00000443 to $0.00000502 represented a substantial advance in a short period, but maintaining the gains could require fresh demand rather than continued forced buying from short sellers.

If buyers remain active and the broader cryptocurrency market continues to strengthen, SHIB could attempt to establish a stronger position above the $0.000005 psychological level.

On the other hand, a decline back below the recent trading range could signal that the short squeeze has begun to lose its influence.

For now, the combination of strong market-wide momentum, $3.1 billion in short liquidations, improving regulatory sentiment and expanded SHIB accessibility has placed Shiba Inu back in focus.

Conclusion

Shiba Inu surged more than 12% as the cryptocurrency market experienced a powerful rebound and an unprecedented wave of short liquidations.

SHIB climbed from $0.00000443 to $0.00000502 before trading around $0.00000495, while its seven-day performance remained up roughly 10%. Across the wider market, approximately $3.38 billion in positions were liquidated across 192,002 traders, with short positions accounting for about $3.1 billion.

The scale of the short squeeze became a major catalyst behind the rally, forcing bearish traders to close positions as prices moved higher. Meanwhile, developments involving the CLARITY Act and expanded SHIB services from UEX US added to the broader positive backdrop.

The $0.000005 level now stands as a key area for Shiba Inu. Whether SHIB can hold above it may depend on whether fresh buying demand continues after the massive wave of forced short closures has passed.