Key Insights
SHIB is consolidating just below resistance after months of steady decline, with declining volatility and easing selling pressure.
Technical indicators show narrowing gaps between the current price and major EMAs, suggesting potential for structural change.
Low liquidity and thin resistance above current levels could allow a swift breakout if momentum builds without requiring strong catalysts.
In the opening days of 2026, Shiba Inu (SHIB) is trading just under a narrow resistance band that has repeatedly blocked upward movement since late Q4 2025. Despite a prolonged downtrend in recent months, current price action suggests a shift in structure. The token is now hovering between $0.0000075 and $0.0000080, a level where previous selling pressure has started to ease.
While SHIB remains under its key moving averages, including the 26-day and 50-day EMAs, the distance between the current price and these indicators has narrowed. This development follows a long phase of price compression and declining volatility. Current trading volumes appear stable, and the absence of aggressive selling is noticeable, indicating reduced bearish momentum.
Price compression builds potential energy
The ongoing pattern resembles the compression structure last seen in September 2025. That setup preceded a sharp price move. Presently, historical volume at resistance remains thin. Consequently, if upward momentum builds, SHIB could push through resistance with limited friction. The structure does not currently require a major catalyst, only a steady continuation of the trend.
Source: TradingView
The market environment remains quiet but tactically significant. Liquidity is thin, and sellers are less active. Buyers have consistently defended lower levels, establishing visible demand near current support. This suggests that even if an upward move fails to hold initially, it may not result in a sharp decline, as underlying support remains firm.
Watch for a resistance reaction
The primary focus for SHIB remains its interaction with the current resistance range. A clear movement above this zone, combined with recovery of the 26 EMA, could set off a swift test of higher levels. Although SHIB has not yet reversed its trend, its downward momentum has stalled, and a decision point is forming in early 2026.
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