Shiba Inu (SHIB) Bounces 23% in Blink of an Eye: Is Recovery Only Question of Time?

Cover image via www.freepik.com Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. Read U.TODAY on Google News Shiba Inu taking a dive Exchange flows Advertisement Shiba Inu has just produced one of the market's fastest short-term recoveries. Following hours of nonstop downward pressure, the token bounced about 23% in a few hours. Although the move initially appears explosive, the rebound is more the result of basic market mechanics following severe overselling than it is of sudden optimism. Shiba Inu taking a dive SHIB has been going down over the last few weeks as part of a recurring downtrend, continuously trading below its major moving averages as liquidity progressively dried up. On daily time frames, selling pressure dominated almost all rally attempts, driving the token into extremely oversold territory. SHIB/USDT Chart by TradingView Volume trends and RSI readings indicated that sellers were depleting rather than increasing. The sharp bounce was ultimately caused by a slight infusion of buying pressure onto a market that had already priced in excessive pessimism rather than a surprise catalyst or abrupt change in fundamentals. Even slight demand can result in disproportionate price reactions when liquidity is limited, and positioning is strongly skewed to the downside. HOT Stories XRP Defies Market Bearishness with $45M in Weekly ETF Inflows Ripple Invited to White House, Peter Brandt Calls Out Bitcoin Manipulation, Musk Endorses Dogecoin, Vitalik Buterin Dumps Ethereum — Top Weekly Crypto News Exchange flows This interpretation is also supported by exchange flow data and on-chain metrics. Exchange reserves continue to be high, indicating that there is still supply available for sale, which suggests that the overall recovery will probably continue to be erratic. However, it appears that panic-selling may be slowing down, making space for technical rebounds given the lack of aggressive new inflows. Advertisement You Might Also Like Sun, 02/08/2026 - 09:15 Kiyosaki Dismisses Critics After Being Ridiculed by Bitcoiners By Alex Dovbnya SHIB still needs to regain key resistance areas and rise above its medium-term moving averages in order to have a sustainable recovery. However, when selling slowed, SHIB reacted swiftly and held up better than many assets that experienced catastrophic breakdowns recently. Shiba Inu might keep gaining ground if overall market sentiment levels off, and money starts to flow back to riskier assets. As of right now, recovery seems more a matter of timing than of possibility, though volatility is probably going to continue to be the defining characteristic in the near future. Advertisement #Shiba Inu #Shiba Inu (SHIB) Price Prediction