Shiba Inu (SHIB), the popular meme-based cryptocurrency, is showing renewed signs of strength, with analysts eyeing a potential 38% price rally. The token has posted a solid 15% gain over the past week, supported by key technical indicators and on-chain data signaling reduced selling pressure and increased investor confidence.
One of the most notable developments is the emergence of a bullish crossover on the daily chart. The 20-day Exponential Moving Average has crossed above the 50-day EMA - a formation commonly referred to as the “golden crossover.” This is a well-regarded bullish technical indicator, suggesting a potential shift in momentum as buying pressure outweighs selling.
The last time this crossover occurred was in May 2025, when SHIB was trading around $0.00001320. Following the signal, SHIB surged by approximately 34% to hit $0.00001765. Interestingly, the current crossover has appeared at nearly the same price point, $0.00001358, adding weight to the possibility of a similar rally.
Technical analysts argue that if SHIB maintains this momentum and manages to break through key resistance levels, a further surge to $0.00001867 - representing a 38% gain from current levels - is well within reach.
Exchange Reserves Hit Yearly Low, Easing Selling Pressure
Supporting the bullish narrative is a significant drop in exchange-held SHIB tokens. According to data from CryptoQuant, the current reserve sits at approximately 83.8 trillion SHIB tokens - worth around $1.14 billion at the current market price. This marks the lowest reserve level in over a year and represents a sharp decline from the over 150 trillion tokens held on exchanges in early 2024.
This decline suggests that investors are increasingly withdrawing SHIB from centralized platforms, a move often interpreted as a sign of long-term holding rather than immediate intent to sell. With fewer tokens available on exchanges, supply tightens, increasing the chances of a price rally should demand remain strong or accelerate.
At the time of writing, SHIB is trading near $0.00001358 and is testing resistance at $0.00001421. If bulls manage to clear this level, the next supply zones to watch include $0.00001468, $0.00001577, and $0.00001765. Beyond that, minor resistance is expected at $0.00001809 and $0.00001867, marking a potential 33%–38% upside from current levels.
On the downside, immediate support lies at $0.00001320 - the same level where the golden crossover occurred. If this floor holds, it will further reinforce bullish confidence. However, a breakdown below $0.00001282 could signal a shift in sentiment, with additional support at $0.00001189 and $0.00001150. Breaching these levels may lead to a more pronounced correction.
Market Sentiment and Broader Context
The broader crypto market has also contributed to the renewed interest in SHIB. As Bitcoin flirts with all-time highs and altcoin trading volumes increase, sentiment across the ecosystem appears to be improving. Meme tokens, often driven by community engagement and speculative interest, tend to benefit significantly in such risk-on environments.
Moreover, Shiba Inu has seen a resurgence in on-chain activity. Data shows an uptick in new wallet creation and heightened engagement on social media platforms - both of which tend to correlate with increased retail interest and short-term price momentum.
Shiba Inu is no longer just a speculative meme coin. The project has been actively expanding its ecosystem through initiatives like Shibarium - its Layer-2 scaling solution built on Ethereum - and integrations with DeFi applications and metaverse projects.
The growing utility and ecosystem development efforts have played a key role in strengthening investor confidence, especially among long-term holders. As these developments gain traction, they could further support the case for sustained upward momentum in SHIB’s price.
Whale Activity and Network Dynamics
Recent blockchain data has also revealed heightened whale activity. Large wallet addresses - typically those holding over 1 million SHIB - have increased in number, indicating accumulation by entities with significant market-moving potential.
This aligns with the declining exchange reserves, suggesting that whales may be pulling SHIB off exchanges in anticipation of higher prices. When combined with technical breakouts and low liquidity on exchanges, this creates an ideal environment for a potential rally.
With bullish technical indicators flashing, on-chain fundamentals strengthening, and overall market sentiment improving, Shiba Inu appears well-positioned for further gains. If SHIB can sustain current momentum and clear overhead resistance zones, the path to $0.00001867 - a 38% gain - may be within reach.
However, traders should also remain cautious, as failure to hold key support levels could trigger a bearish reversal. Volatility remains high across the crypto market, and meme coins like SHIB are particularly sensitive to shifts in sentiment.
Still, the current alignment of technical and on-chain factors suggests that Shiba Inu could be entering a promising phase - potentially mirroring or even surpassing its previous rally.