Shiba Inu Shows Early Signs of Recovery After Prolonged Downtrend

Shiba Inu (SHIB) is beginning to show signs of a potential recovery following months of sustained downside pressure. After a sharp sell-off, the meme coin has bounced from a clearly defined support zone, drawing renewed attention from traders and market watchers.

The recent price action suggests that SHIB is attempting to stabilize above critical levels, raising cautious optimism about a possible trend shift.

Unlike brief relief rallies often seen during extended downtrends, SHIB’s rebound has been accompanied by a noticeable increase in trading volume.

This rise in participation indicates that the move may reflect genuine accumulation rather than a short-lived bounce, strengthening the case for a more durable recovery.

Rising Volume and Moving Averages Signal Stabilization

One of the more encouraging developments is SHIB’s ability to reclaim key short-term moving averages. Holding above these levels is often interpreted as an early sign that selling pressure is easing.

If price action remains supported above these indicators, it could mark the initial phase of a broader trend reversal.

Trading activity has also picked up during the rebound, suggesting growing interest among momentum-driven participants. This distinguishes the current move from low-volume recoveries that typically fade quickly.

Technical Indicators Point to Shifting Momentum

SHIB’s technical indicators further support the possibility of a changing trend. Short- and mid-term exponential moving averages have begun to flatten, a pattern that often signals weakening bearish momentum.

While the asset remains below its long-term moving averages, the loss of downward slope suggests selling pressure may be losing dominance.

In addition, the relative strength index has moved out of oversold territory and is holding within a neutral-to-bullish range. This behavior is commonly observed in the early stages of market recoveries, as momentum gradually transitions away from extreme bearish conditions.

Key Levels and Market Risks Remain in Focus

The support zone that triggered SHIB’s rebound continues to hold, providing a foundation for potential upside attempts. If momentum builds, traders will likely watch for a test of nearby resistance levels, including the 50-day EMA, which could act as a key confirmation point for further bullish movement.

Despite the improving signals, risks remain elevated. SHIB’s recovery is still fragile, and failure to maintain current support could push the token back into a range-bound or declining structure. Broader market conditions also play a critical role, as weakness in Bitcoin could quickly dampen SHIB’s momentum.

Outlook: Early Recovery, Cautious Optimism

While Shiba Inu’s rebound remains in its early stages, the combination of rising volume, stabilizing indicators, and sustained support has injected new optimism into the market. If SHIB can continue building momentum and hold above key technical levels, it may be positioning itself for a more constructive trend as 2026 approaches.