- Shiba Inu broke key resistance as multiple bullish indicators aligned on the daily chart.
- Analysts target major upside after rare divergence and descending wedge breakout confirmation.
- Meme coin market strength and rising open interest support continued bullish momentum.
Shiba Inu has once again captured fresh attention after a strong start to the week. Price action pushed to levels unseen since mid-November. Momentum has shifted clearly in favor of buyers. A nearly 50 percent climb from yearly lows signals renewed confidence. Analysts now focus on technical structures forming on higher timeframes. Several indicators align at once. Such alignment rarely appears during weak conditions.
Analysts Highlight a Bullish Technical Setup
Shiba Inu price extended gains on Monday and confirmed short-term strength. The token now ranks among top performers across the crypto market. Analysts believe the current structure supports further upside. Javon Marks shared a detailed outlook through X. Marks expects a potential 246 percent rally toward the $0.00003 level. That projection relies on a bullish divergence pattern.
Momentum indicators rose while price previously declined. Such behavior often signals weakening downside pressure. Buyers typically regain control during these phases. Additional chart patterns strengthen the outlook. The daily chart reveals a descending wedge formation. Two converging trendlines guide price lower within narrowing ranges. Breakouts usually occur near wedge convergence.
SHIB recently pushed beyond that boundary. Technical traders often treat such moves as confirmation. Momentum indicators support that view. Price moved above the Supertrend indicator for the first time since July. The last similar signal preceded a 40 percent rally. Moving averages also confirm improving structure.
Price crossed above the 50-day exponential moving average. Relative Strength Index readings continue rising without overbought signals. Stochastic Oscillator data also trends higher. These indicators suggest controlled momentum rather than exhaustion. Analysts now point to $0.00001484 as the next major target.
Meme Coin Momentum Fuels the Rally
Broader market forces support the recent advance. Bitcoin strength has lifted sentiment across altcoins. Seasonal buying patterns also play a role. The January Effect continues to influence trader behavior. Dip buying strategies appear widespread again. Derivative data confirms growing interest. Shiba Inu open interest surged sharply during recent sessions. Levels reached $145 million, matching October highs.
That figure stood near $60 million during November lows. Rising open interest often signals stronger conviction from traders. Sentiment indicators also support momentum. The Crypto Fear and Greed Index climbed steadily. Readings rose from extreme fear near 10 during December. Current levels sit near 42. Meme tokens usually perform well during rising optimism phases. Shiba Inu also benefits from a broader meme coin resurgence.
Tokens like Pepe, Dogwifhat, and Bonk posted strong gains. Combined market capitalization across meme assets now exceeds $52 billion. Capital rotation favors higher beta tokens during bullish phases. Traders now watch volume trends and key support levels closely. Sustained demand could extend the rally further. Failure to hold recent gains would invite caution.
