Shiba Inu Erases 11-Month Bear Cycle with New Support at $3.26 Billion

Shiba Inu (SHIB) has finally broken its brutal 11-month bear cycle, and it's all thanks to a strong technical and fundamental backdrop. The token's market capitalization has stabilized around $3.22, $3.26 billion, marking a new support level that's turning the previous obstacle into a reliable floor.

The technicals are looking good for SHIB, as it has settled above its 200-day moving average, a milestone not reached since September last year. This move is a clear indication that the token is erasing its bearish cycle and setting up for a potential rally.

The news isn't just driven by technicals, however. The recovery of SHIB is also supported by strong fundamental factors, including its official entry into Japan's regulated market. The local regulator, the FSA, granted a crypto service provider license to Laser Digital, a subsidiary of traditional financial giant Nomura, and included SHIB among the assets approved for institutional investors.

The short squeeze in the futures market has also played a significant role in pushing up the price of SHIB. Bears betting against the token were liquidated to the tune of $3.1 billion, forcing them to urgently buy back into the market and push the price higher.