SHIB Rallies With Memecoin Surge But Resistance Looms

• Shiba Inu jumps double-digits alongside PEPE and DOGE in broader memecoin rally.
• SHIB trades above short-term moving averages but remains below key long-term indicators.
• Token burn rate spikes over 10,500% amid reduced supply efforts.
• Technical analysis targets $0.0000085 resistance level by month-end.

Shiba Inu (SHIB) climbed over 10% as memecoins led Friday's cryptocurrency market surge. The dog-themed token joined peers like PEPE and DOGE in double-digit gains amid renewed risk appetite. Yet SHIB faces persistent medium-term headwinds despite its short-term pop. Investors are closely watching whether the token can break through crucial resistance levels to sustain momentum.

Why Are Memecoins Leading the Crypto Rally?

Large-cap memecoins outperformed the broader crypto market on Friday. PEPE led with 38% gains while SHIB and DOGE posted double-digit climbs. Analysts attribute this rotation to several factors. Traders are showing renewed risk appetite after months of consolidation. Short liquidations added fuel to PEPE's climb, which saw $9.1 million in bearish positions erased. Memecoin market capitalization climbed over 16% to $47.4 billion. That rotation reflects sector-specific optimism rather than fundamental shifts. Market participants speculate about potential memecoin exchange-traded funds in 2026. Some large holders have accumulated positions, like DOGE whales adding over a billion tokens. Still, caution remains paramount since most memecoins trade significantly below record highs. SHIB has lost roughly 85% from its 2024 peak despite recent strength. The category's momentum could prove fleeting without sustained catalysts.

Market participants speculate about potential memecoin exchange-traded funds in 2026. Some large holders have accumulated positions, like DOGE whales adding over a billion tokens. Still, caution remains paramount since most memecoins trade significantly below record highs. SHIB has lost roughly 85% from its 2024 peak despite recent strength. The category's momentum could prove fleeting without sustained catalysts.

Can SHIB Overcome Its Technical Hurdles?

SHIB shows conflicting technical signals despite its price jump. It trades above its 20-day moving average around $0.00000740, indicating short-term bullish momentum. Yet the token remains below its 50-day and 200-day averages, reflecting persistent medium-term pressure. Analysts highlight vulnerability if SHIB fails to reclaim $0.00000807 resistance. Mixed oscillator readings and high intraday volatility complicate the outlook.

Technical analysis offers a potential near-term target of $0.0000085 by January's end. This projection relies on emerging bullish patterns like a golden cross and positive MACD divergence. Absence of supportive news could limit upside potential despite these indicators. Agile traders may find opportunities if SHIB breaks key resistance, but the overall context remains challenging. Failure to hold recent gains risks triggering corrections.

What Impact Will Token Burns Have on SHIB's Trajectory?

SHIB's token burn rate jumped 10,500% in 24 hours, removing 173 million tokens. This sharp reduction in supply followed months of price declines. Over 410 trillion SHIB have been destroyed since launch, leaving nearly 589 trillion tokens circulating. The burn mechanism aims to create scarcity and support valuations. Reduced supply could help ease selling pressure over time.

SHIB's approach contrasts with PEPE's strategy focused on trading infrastructure and staking rewards. While burns may help SHIB's supply-demand dynamics, price reaction has been limited so far. The token still trades near $0.000007 with a $4 billion market cap. Achieving meaningful price impact requires sustained burn activity alongside growing demand. Ecosystem developments like Shibarium scaling could complement these efforts.

Burns alone are unlikely to drive significant revaluation without broader adoption. SHIB must navigate market volatility and security concerns affecting all memecoins. The token's trajectory depends on balancing reduced supply with genuine utility growth.