Shiba Inu (CRYPTO:SHIB) has recently surged by 13% since July 5, leading to significant liquidations in short positions within its futures market.

Short liquidations occur when traders are forced to buy back SHIB at higher prices to cover their losses as the price rises against their positions.

This surge has marked the highest single-day short liquidations for SHIB since March 8, with long liquidations far surpassed.

Despite the price increase, SHIB's futures market activity remains subdued, evidenced by a 23% decline in futures open interest this month, hitting its lowest level since February at $27.61 million.

Technical indicators, like the Aroon Up Line, suggest that the current uptrend in SHIB's price may not be sustainable, signaling potential weakness ahead.

Analysts predict a possible correction that could see SHIB's value potentially dropping to around $0.00001570.