Shiba Inu Holds Key Support as Derivatives Data Point to Potential Upside<

Key Moments

Rising Volumes and Whale Activity Support Bullish Tone

Shiba Inu (SHIB) is trading near $0.0000092 at the time of writing on Tuesday, stabilizing after a 3% bounce from a key support area. Strengthening bullish sentiment is being reflected in increasing trading activity, large orders from major holders, and a clear bias toward buying, accompanied by supportive funding dynamics. Technically, recent price action leaves room for an extension higher, with levels above $0.000010 in focus.

Data from Santiment show that SHIB ecosystem trading volume surged to $66.91 trillion on Sunday. By Tuesday, volume remained elevated at $4.01 trillion. This marks the highest level since March 2024. Consequently, participation is rising and liquidity is deepening, adding support to the bullish view.

CryptoQuant’s summarized data also align with this positive narrative, highlighting sizable whale flows and a dominance of buy orders across SHIB spot and futures venues. Together, these signals suggest that the market may be positioning for a further move to the upside.

Derivatives Metrics Turn in Favor of the Bulls

On the derivatives front, funding metrics for Shiba Inu are signaling a tilt toward bullish positioning. Coinglass’s OI-Weighted Funding Rate figures indicate that fewer traders are positioning for additional downside in SHIB compared with those expecting higher prices.

The funding rate turned positive on Monday and stands at 0.0096% on Tuesday, which means long positions are paying shorts. Historically, as illustrated in Shiba Inu’s funding rate chart, similar shifts from negative to positive territory have been followed by sharp rallies in SHIB’s price.

Technical Setup: Breakout, Support, and Key Levels

From a chart perspective, Shiba Inu recently broke out above a falling wedge pattern constructed from multiple swing highs and lows connected by two converging trendlines. The breakout occurred on December 3, but the upward move stalled when price encountered resistance at the 50-day Exponential Moving Average (EMA) at $0.0000092.

Despite this initial rejection at the 50-day EMA, SHIB managed to hold the upper boundary of the broken wedge as support and gained nearly 3% on Monday. By Tuesday, the token is fluctuating around $0.0000092, keeping the breakout structure technically intact. If the current recovery persists, SHIB may attempt a move toward the next notable resistance area at $0.000010.

Momentum indicators on the daily timeframe are gradually turning more constructive. The Relative Strength Index (RSI) is at 46 and pointing higher toward the neutral 50 mark, implying that bearish momentum is fading. For bullish pressure to strengthen decisively, the RSI would need to break above the neutral threshold. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator triggered a bullish crossover last week. That crossover is still in place and continues to underpin the optimistic bias for SHIB.

Downside Risk: Support to Watch

If buying pressure weakens and SHIB fails to build on the recent rebound, price could retrace lower. In that scenario, the next significant support zone is located near $0.0000076, which may come into play if a corrective phase develops.

Context Within the Broader Crypto Market

SHIB’s current setup comes alongside broader activity in the digital asset space. Other tokens have recently exhibited notable gains, with Canton, Zcash, and Luna Classic featuring among top performers with double-digit advances. In addition, Cardano (ADA) has shown stabilization as holders underpin a constructive trend, while major memecoins such as Dogecoin and Shiba Inu are testing important resistance levels ahead of the upcoming FOMC meeting.