Shiba Inu’s dramatic rally is cooling despite a nearly 12-fold spike in trading volume, leaving traders focused on whether bulls can hold a freshly reclaimed support level. The meme token surged past its 100-day exponential moving average (EMA), ending months of trading below that barrier, but the current daily candle shows momentum waning as profit-taking sets in.
The volume explosion marked one of the strongest participation bursts in recent months. While such expansions often accompany sustained breakouts, they also signal that early investors may be locking in gains. SHIB now faces its first major test at the 100-day EMA, sitting near $0.00000500. A successful defense would keep the short-term recovery intact; a breakdown could erase the recent technical progress.
Beyond immediate support, the 200-day EMA around $0.00000600 looms as a critical longer-term resistance. That level has rejected multiple recovery attempts during the prior downtrend, so a decisive close above it would represent the most structurally bullish shift for SHIB this year. Meanwhile, a secondary support zone near $0.00000445 — where shorter-term moving averages clustered before the breakout — would become the next fallback if selling deepens.
Momentum indicators highlight the tension. The Relative Strength Index has climbed above 70, placing SHIB in overbought territory for the first time in months. While elevated RSI alone doesn’t guarantee a reversal, it often signals that buyers may pause before pushing further.
On-chain data reinforces the rally’s original strength. The number of active SHIB addresses has jumped over 40% in the past week, and large transfers exceeding $100,000 have become more frequent — a pattern typically associated with real user engagement rather than pure speculation. Additionally, the top 100 non-exchange whale wallets have increased their combined holdings by approximately 2.5% in ten days, suggesting sophisticated investors view current levels as attractive. This accumulation adds a layer of conviction, though whale exits can quickly spark volatility.
Broader meme coin momentum is also contributing. The sector has seen renewed interest, with Dogecoin and smaller tokens posting gains, indicating a capital rotation within altcoins. SHIB is benefiting disproportionately thanks to its large community, even as social media engagement remains well below 2021 peaks.
Traders are now watching whether SHIB can stabilize above its 100-day EMA and eventually challenge the 200-day EMA. The combination of exceptional volume, on-chain signals, and whale behavior provides a more grounded explanation for the rally than mere speculation, but sustainability depends on continued demand and overall market conditions.
