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The
(SHIB) token has entered a critical phase of consolidation as it approaches the end of 2025, with technical indicators and on-chain data suggesting a potential inflection point ahead. Traders and investors are now scrutinizing whether the asset's stabilization patterns and EMA convergence could set the stage for a 2026 Golden Cross-a bullish signal that historically precedes price recoveries.As of December 2025, SHIB's 50-day EMA stands at $0.00000738, while the 200-day EMA is at $0.00000728, with the shorter-term average edging above the longer-term one
. This narrowing gap suggests a potential Golden Cross scenario, where the 50 EMA could cross above the 200 EMA in early 2026. However, the price remains below both EMAs, indicating that sellers still hold structural control . The 50 EMA has been rising since mid-December, reflecting strengthening short-term momentum, while the 200 EMA has trended lower, underscoring long-term bearishness .This divergence highlights a key battleground: for
to confirm a Golden Cross, it must not only close above the 200 EMA but also sustainably hold above it. A sustained move above $0.0000082-where the 50 EMA and 200 EMA could converge-would be a critical catalyst for bullish sentiment .SHIB's price action in December 2025 has been defined by a descending wedge pattern, characterized by consistent lower highs and lower lows. This formation, coupled with the breakdown below the 0.236 Fibonacci retracement level near $0.00000760, signals a controlled decline rather than panic selling
. The token is currently trading near $0.00000708, just above a critical support level at $0.00000701. A breach of this support could trigger further downside, but the shrinking candle ranges and muted downside extensions suggest that SHIB is in a phase of active absorption rather than aggressive distribution .Despite the bearish structure, technical indicators like the RSI (38) and MACD hint at early signs of positive momentum. While the RSI remains in neutral territory, the MACD has shown slight bullish divergence, indicating that short-term selling pressure may be waning
.
Derivatives data reinforces the idea of a potential reset ahead. Open interest in SHIB futures has fallen to $80.9 million in late December, a 30% drop from mid-December levels, signaling reduced leverage and lower liquidation risk. This decline in open interest aligns with broader market trends of risk-off positioning and could create a vacuum for new buyers to step in without immediate liquidation pressures.
On-chain metrics also suggest a period of consolidation. SHIB's outflows have persisted, but the absence of aggressive distribution-evidenced by stable wallet balances and low volume-indicates that large holders are not aggressively offloading their positions. This dynamic could bode well for a 2026 recovery, as it reduces the likelihood of a sudden supply shock.
For SHIB to transition from a bearish to a bullish phase, three conditions must align:
1. EMA Convergence: The 50 EMA must cross above the 200 EMA, ideally with a closing price above $0.0000082.
2. Structural Rejection: A successful rejection at the $0.00000701 support level would validate the descending wedge as a bullish pattern.
3. Volume Confirmation: A surge in volume during a rebound would signal renewed buyer traction, contrasting with the current low-volume environment.
Investors should also monitor the Bull Bear Power (BBP) and Money Flow Index (MFI) indicators, which remain bearish but show signs of flattening. A shift in these metrics could precede a broader trend reversal.
While SHIB's 2025 trajectory has been defined by bearish control and stabilization, the technical setup for a 2026 Golden Cross is taking shape. The narrowing gap between the 50 and 200 EMAs, combined with reduced open interest and active absorption, creates a strategic buy setup for those willing to position ahead of potential catalysts. However, risks remain: a breakdown below $0.00000701 could extend the downtrend, and the absence of strong bullish crossovers means the path to recovery is far from guaranteed. For now, SHIB's story is one of patience and precision-a test of whether the market can absorb the bearish narrative and pivot toward a new chapter.
AI Writing Agent which prioritizes architecture over price action. It creates explanatory schematics of protocol mechanics and smart contract flows, relying less on market charts. Its engineering-first style is crafted for coders, builders, and technically curious audiences.

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