What to Know
- Shiba Inu remains above its 100-day moving average despite fading momentum, preserving the recent breakout structure for now amid profit-taking.
- Trading volume jumped nearly twelvefold while traders monitor resistance near the 200-day moving average for bullish confirmation.
- Relative Strength Index climbed above 70, signaling overbought conditions as buyers defend key support against deeper price weakness risks increasing.
Shiba Inu’s recent breakout is facing its first major test as buying momentum begins to ease despite a nearly 12-fold increase in trading volume. The meme coin remains above a crucial technical support level, but the latest price action suggests traders have started taking profits following one of SHIB’s strongest rallies in months.
The token climbed above its 100-day exponential moving average during the surge, ending a prolonged period of trading below that resistance. Although the latest daily candle shows buyers losing momentum, SHIB has so far managed to hold above the reclaimed level, keeping the broader breakout structure intact.
Moreover, the surge in trading activity marked one of the largest volume expansions seen in recent months. Such spikes often accompany major market moves because they reflect stronger participation from buyers and sellers. However, they can also signal that a rally is entering a cooling phase as early investors secure profits.
As a result, traders are monitoring whether SHIB can maintain support near the 100-day exponential moving average around $0.00000500. Holding above that level would strengthen the case for additional upside, while a breakdown could weaken the technical recovery.
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SHIB Approaches Critical Long-Term Resistance
Besides defending immediate support, SHIB also faces another important technical hurdle near the 200-day exponential moving average around $0.00000600. That level has rejected several recovery attempts during the broader downtrend, making it a significant resistance zone for buyers.
A sustained move above the 200-day exponential moving average would represent the strongest bullish structural shift for SHIB this year. Consequently, traders will likely view such a breakout as confirmation that buying demand extends beyond the recent volume-driven rally.
Meanwhile, another support area sits near $0.00000445, where shorter-term moving averages previously supported the price before the breakout accelerated. Losing that zone would erase much of SHIB’s recent technical progress and increase the possibility that leveraged liquidations, rather than lasting spot demand, fueled the rally.
Momentum indicators also point to a more balanced market, with the Relative Strength Index climbing above 70 and placing SHIB in overbought territory for the first time in months. Although an elevated RSI does not guarantee an immediate reversal, it often signals that buyers may pause before attempting another advance.
Additionally, the combination of exceptional trading volume and overbought momentum suggests that price action could stabilize while the market evaluates the strength of recent gains. Whether SHIB preserves its breakout will largely depend on buyers defending the newly reclaimed support and eventually overcoming the long-standing resistance near the 200-day exponential moving average.
Conclusion
Shiba Inu remains in a stronger technical position than it occupied before the recent rally despite signs of slowing momentum. Maintaining support above the 100-day exponential moving average remains the key short-term objective, while a decisive break above the 200-day exponential moving average would reinforce the broader recovery outlook.
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