SHIB's Range-Bound Momentum: A Tactical Entry Point for Positioning in Shiba Inu

In the volatile world of cryptocurrency, Shiba Inu (SHIB) has carved a unique niche as a meme coin with a cult following. As of December 2025, SHIB finds itself in a tight consolidation phase, presenting a compelling case for strategic investors to evaluate its technical resilience and on-chain conviction. While the token remains below critical moving averages and faces bearish momentum, emerging on-chain data and relative strength dynamics suggest a potential inflection point.

Technical Resilience: A Tale of Two Trends

SHIB's price action in late 2025 reflects a bearish bias, with the token trading below its 20, 50, and 200-day moving averages. The 50-day EMA sits at $0.0000083, while the 200-day EMA is at $0.0000105, both acting as dynamic resistance levels. However, the formation of a falling wedge pattern-bottoming at $0.0000068 in December and rebounding toward $0.000010-hints at a potential breakout scenario.

Key support levels are critical to monitor. The immediate support at $0.0000072 is fragile, with a breakdown likely to target $0.0000067. Conversely, resistance at $0.00000824 could act as a catalyst for a bullish reversal if breached with strong volume. A classic daily pivot point at $0.00001047 offers a secondary target, with a move above this level potentially extending gains to $0.00001074. Meanwhile, the RSI stands near 32, signaling exhausted bearish momentum and a possible short-term relief rally.

On-Chain Conviction: Accumulation Amidst Decline

Despite SHIB's price underperformance, on-chain metrics tell a story of growing conviction. The number of SHIB holders has increased from 1.46 million to 1.54 million, indicating a transition from distribution to accumulation. Whale activity has surged, with mega-whale balances rising 28% year-over-year and a 60% acceleration in accumulation over the past 30 days. Centralized exchange holdings have also declined by 22%, reducing immediate sell-side liquidity.

The token's burn rate, while historically minimal, spiked by 1,000% on January 14, 2026, reducing circulating supply and potentially enhancing scarcity. This development, coupled with a net outflow of 606 million SHIB from exchanges, suggests strategic positioning by long-term holders.

Relative Strength: A Weakness That May Fuel Opportunity

SHIB's performance relative to Bitcoin (BTC) and Ethereum (ETH) remains bearish. Over the past two years, SHIB has lost nearly 10% of its value, while BTC surged 120%. However, this underperformance may create a re-rating opportunity. SHIB's shrinking exchange supply-now at 23.55% of total circulation-reduces downward pressure, and its price has shown intermittent correlation with broader altcoin sentiment.

Derivative metrics, such as the short-to-long ratio, remain skewed toward downside expectations, but this imbalance could reverse if SHIB breaks above $0.00000824 with sustained volume.

Strategic Entry: Balancing Risk and Reward

For investors, SHIB's range-bound momentum presents a tactical entry point. A breakout above $0.00000824 could trigger a rally toward $0.00001047, while a breakdown below $0.0000072 would signal further weakness. Given the growing holder base and whale accumulation, a measured entry near $0.0000075-aligned with the inverse head-and-shoulders support level-offers a risk-reward profile that justifies cautious optimism.

However, SHIB's large supply and speculative nature mean volatility remains a key risk. Investors should prioritize position sizing and use stop-loss orders to mitigate downside exposure.

Conclusion

SHIB's technical and on-chain dynamics paint a nuanced picture. While bearish indicators persist, the token's consolidation phase, supported by accumulation and a potential breakout pattern, creates a compelling setup for strategic investors. As the market awaits a catalyst-be it a macroeconomic shift or a surge in altcoin liquidity-SHIB's range-bound momentum offers a unique opportunity to position ahead of a potential reversal.