Shiba Inu (SHIB) saw its trading volume spike nearly 12 times during a recent rally, pushing the meme token sharply upwards after months of consolidation. However, this surge is now showing clear signs of waning momentum as buyers struggle to maintain the upward push.
The initial breakout brought a sudden burst of activity, with trading volume surpassing previous records and propelling SHIB above its prolonged resistance level near $0.00000500, marked by the 100-day exponential moving average (EMA). This move was the first significant step in what looked like a potential trend reversal after a long period of sideways trading.
But the latest daily candle indicates a slowdown. Sellers are increasingly active, putting pressure on SHIB and risking a pullback below recently gained support zones. The token's ability to hold above the 100-day EMA now becomes key for sustaining any short-term bullish momentum. Meanwhile, the 200-day EMA, situated around $0.00000600, remains the key resistance level that SHIB must overcome to trigger a more meaningful structural uptrend.
Historically, attempts to break past the 200-day EMA during the ongoing broader downtrend have failed, leading to swift reversals. A decisive close above this mark would mark the first substantial bullish shift since early 2026, attracting fresh momentum traders and potentially reversing the prevailing bearish trend.
On the downside, if SHIB falls below $0.00000445, where shorter-term moving averages currently provide support, the market could see further declines. This scenario would likely trigger more selling as profit-taking intensifies.
Shiba Inu’s recent volume dynamics and price action illustrate how quickly market sentiment can shift after a dramatic spike, reminding traders to remain cautious as the token approaches critical technical levels.
