Shiba Inu Rallies 25% From Lows, Stages Strong Comeback After Ending Oversold Conditions

▲ Shiba Inu (SHIB) / AI-generated image

Shiba Inu (SHIB) has recorded a strong rebound of approximately 25% from its recent low, breaking its prolonged downtrend and entering a full-fledged recovery phase.

According to cryptocurrency outlet U.Today on February 16 (local time), Shiba Inu has overcome weeks of downward pressure and is now trading about 25% higher than its recently formed local bottom. After entering oversold territory, the token consolidated at the bottom and rebounded, drawing renewed attention from investors. As selling pressure subsided, Shiba Inu established a strong support level around $0.000006. Repeated buying at this price range laid the groundwork for the current rally.

From a technical perspective, Shiba Inu’s price has been gradually trending upward, reclaiming its short-term moving averages. In particular, the formation of consecutive higher lows suggests that immediate downward pressure has temporarily eased. The surge in trading volume observed during the rebound is interpreted as the result of a short squeeze—buying driven by the liquidation or covering of short positions—as well as opportunistic capital seeking to accumulate at lower levels.

From a longer-term standpoint, Shiba Inu remains in a broader downtrend, but the recent rebound indicates a shift in market sentiment from fear-driven selling to cautious accumulation. Following a steep month-long decline, investors appear to be seeking discounted entry points and making strategic purchases in oversold conditions. If momentum continues, Shiba Inu is likely to test nearby resistance levels formed during its previous consolidation range.

If the price breaks through key resistance zones and sustains its upward trajectory, speculative interest in the asset could intensify further, supporting the prospect of a more substantial recovery. The roughly 25% rebound from recent lows suggests that selling pressure is stabilizing. Should buying demand remain steady and the broader cryptocurrency market environment improve, Shiba Inu may gain the momentum needed for stronger price performance in upcoming sessions.

Market participants are closely watching whether this rebound will prove to be merely a temporary relief rally or the beginning of a long-term trend reversal. The sustainability of the newly formed support level and changes in trading volume are expected to be key factors determining the next direction. Maintaining stable price action while breaking through resistance levels will serve as a crucial test of Shiba Inu’s true recovery strength.

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