Shiba Inu (SHIB) Jumps 23% After Deep Sell-Off; Recovery Looks Timing-Dependent
Shiba Inu (SHIB) surged about 23% within hours after a period of heavy selling pressure and thin liquidity. The rebound followed days and weeks of a downtrend, with SHIB trading below major moving averages and indicators showing oversold conditions. On-chain and exchange-flow data show high exchange reserves remain, indicating available supply for sale and suggesting the rally was driven by technical short-covering and limited liquidity rather than a strong fundamental catalyst. Panic-selling appears to be easing, allowing for technical bounces, but SHIB still needs to overcome key resistance levels and move above medium-term moving averages for a sustainable recovery. Expect continued volatility: short-term gains possible if market sentiment stabilizes and risk-on flows return, but sporadic sell pressure could keep the recovery uneven.
Neutral
The article describes a fast, sizable short-term bounce (≈23%) driven primarily by oversold technical conditions and thin liquidity rather than a shift in fundamentals. Exchange reserves remain high, signalling available selling pressure that can cap upside and produce choppy moves. Historically, similar rebounds after heavy sell-offs (across altcoins and meme tokens) often produce quick snapbacks followed by volatility until clearer signs of demand—sustained volume above moving averages, falling exchange reserves, or macro risk-on flows—emerge. In the short term, traders can expect further volatile rallies and pullbacks suitable for swing or scalp trades; in the medium to long term, a sustained bullish trend will require SHIB to reclaim key resistance levels and for on-chain/flow metrics to show declining supply on exchanges or increased accumulation. Therefore the net impact is neutral: bullish for opportunistic short-term trades but uncertain for a durable market-wide rally.