Shiba Inu has begun the year 2026 with an impressive technical rebound in the markets. The price of SHIB recorded a 30% Shiba Inu rally during the first week of January, accumulating a 48% rise from its December lows. According to analyst Ananda Banerjee, this move stands out after a previous year of underperformance. However, data suggests that the current trend requires greater conviction from large investors to be sustained.
This bullish momentum is closely linked to the general surge in the meme coin sector. During the last seven days, this market niche grew by approximately 23% according to seasonal indices. Thus, SHIB benefits from a massive capital rotation toward liquid speculative assets. As a result, the rise seems to be a sector-wide beta move and not a specific project accumulation. This scenario is common when retail market sentiment becomes extremely optimistic.
On the other hand, “whale” data shows a different reality from the price euphoria. Since December 31, portfolios with the largest supplies reduced their holdings by one trillion tokens. Therefore, large holders took advantage of the bullish strength to strategically sell their positions. This behavior indicates that the Shiba Inu rally was absorbed by incoming liquidity but lacks solid institutional backing. Whales often sell into fast rallies to secure profits.
Will SHIB manage to break the six-zero resistance and consolidate a new bullish cycle?
Likewise, on-chain spent coin activity reveals a 178% increase in token movement. Many long-term investors decided to move their assets during this sudden price surge. Consequently, retail support seems focused on immediate profit-taking rather than long-term accumulation. This dynamic has pushed the price into a necessary technical consolidation phase. The market is now waiting for a much clearer buy signal.
On the other hand, the “bull pennant” technical formation suggests that the price could be preparing for another move. To confirm a definitive breakout in this first quarter, the asset must close daily above a critical level. Therefore, surpassing the 0.0000095 dollar barrier is the primary objective for buyers. Likewise, the Money Flow Index (MFI) must show an upward trend to validate real interest. The cryptocurrency is at a structural decision point.
Will the Shiba Inu community be able to attract new whales before the quarter ends?
However, the lack of buying during dips suggests that current demand is still fragile. If the momentum of meme coins fades, the asset could face a retreat toward previous support levels. Hence, maintaining the current price base is vital to avoid invalidating the bullish scenario. Nevertheless, the ecosystem remains one of the most watched by short-term traders. The characteristic volatility of these assets is present in every session.
Finally, the near future of Shiba Inu will depend on its ability to generate its own high-impact news. The Shiba Inu rally has served as a reminder of the coin’s explosive potential. In this way, investors are waiting to see if the trend transforms into a sustainable bull market. The first quarter of the year will be decisive in defining if SHIB can regain its lost prominence. The balance between profit-taking and new demand will set the course.
