SHIB's 560% Volume Surge Defies Price Drop as Bulls Target Breakout Amid Altcoin Rotation

Shiba Inu (SHIB) experienced a dramatic 560% surge in spot trading volume on Kraken within a one-hour period, reaching $14,690 in activity. This spike occurred despite a broader market downturn, with SHIB trading down 1.16% over the past 24 hours and 10.84% weekly, according to data from u.today. The price decline followed a sharp drop on Friday, falling from $0.00001356 to $0.00001279, extending its decline from a September 18 peak of $0.0000136. The rebound on Saturday saw SHIB dip to $0.00001278 near its 50-day simple moving average before stabilizing at $0.000013. However, total 24-hour trading volume across exchanges fell 23.35% to $166.92 million, as reported by CoinMarketCap.

The volume surge coincided with a positive shift in Shiba Inu’s funding rate, which turned green at 0.0018% per CoinGlass data. A positive funding rate in crypto derivatives indicates that perpetual futures contracts trade above the spot price, reflecting bullish sentiment and high leverage on long positions. This development contrasts with the broader market, where SHIB’s price remains below its 50-day and 200-day moving averages, signaling ongoing bearish pressure.

Analyst forecasts highlight potential for a significant rebound. Heber Mayen, a prominent community member, identified a descending triangle pattern in SHIB’s one-month chart, suggesting an imminent breakout. Mayen noted that SHIB has reached the "extreme low point" of the pattern, with strong momentum in its indicators, including an RSI of 49.15, positioning the token for a potential explosive move. Separately, CoinCodex projects an 8.01% price increase over the next five days, targeting $0.000015 from the current $0.000014. This forecast aligns with a broader technical analysis showing 26 bullish indicators versus six bearish ones, reinforcing a positive short-term outlook.

The recent volatility has also drawn attention to whale activity. Over 7 trillion SHIB tokens were moved on-chain in a single day, including a significant transfer of 512 billion tokens from Kraken to undisclosed addresses. This movement, coupled with a narrowing price range between $0.000012882 and $0.000013584, suggests accumulation ahead of a potential directional move.

Amid the SHIB-specific developments, the broader crypto market shows signs of a shift toward altcoins. Bitcoin dominance has declined to 56.6%, the lowest in three years, as capital rotates into alternative assets. Analysts attribute this trend to favorable macroeconomic conditions, including anticipated Federal Reserve rate cuts, which are expected to reduce the opportunity cost of holding riskier assets. The approval of generic listing standards for crypto ETFs has further accelerated this rotation, with over 90 applications pending for altcoin ETFs.

While SHIB’s short-term prospects remain speculative, the broader market dynamics underscore a maturing ecosystem where utility-driven projects are gaining traction. Institutional adoption, regulatory clarity, and technological innovation are reshaping investor priorities, with altcoins like SHIB, Ethereum, and Solana leading the charge. However, market participants caution that volatility remains a key risk, particularly for tokens lacking robust fundamentals or clear use cases.