Shiba Inu (SHIB) has staged a notable recovery, bouncing 17% from recent lows after a severe monthly correction that erased approximately 30% of its market value. This rally, which includes a 10.35% gain in 24 hours, suggests potential short-term exhaustion among sellers following months of consistent selling pressure and a defensive market stance.
The asset's long-term technical picture remains bearish, having suffered structural damage by continuously forming lower highs and lower lows while trading below its major moving averages. The downward momentum was accelerated by breakdowns from consolidation zones, leading to liquidations and the exit of short-term holders.
However, the recent price action indicates a shift in short-term dynamics. SHIB is bouncing strongly after several tests of the $0.000006 support region, with increased trading volume suggesting renewed trader participation, likely from short-covering and dip buying. On-chain metrics from Santiment and Glassnode provide further context. The mean coin age has been trending higher since a panic-driven sell-off in December, and the age consumed metric shows only small spikes, signaling network-wide accumulation is underway. The low dormancy values and a negative 3-month MVRV ratio indicate that long-term holders are not in a hurry to sell, reducing the immediate threat from profit-taking.
The rally coincides with a broader altcoin market resurgence, where the total altcoin market cap expanded by 7.59% from $683.58 billion to $735.46 billion as Bitcoin's dominance dropped. Within the memecoin sector, Pepe (PEPE) led gains with a 27.7% surge in a day, outpacing Dogecoin (DOGE).
For SHIB, the immediate challenge is to regain adjacent resistance zones and sustain gains without a sharp retracement. While on-chain trends and market conditions support the possibility of further short-term appreciation, the overall market structure has not turned bullish, and recovery rallies within downtrends are prone to failure without sustained buying pressure.
