Shiba Inu's Big Rally Fizzles Out Amid Quickly Declining Volume

Shiba Inu's (SHIB) recent rally has come to an abrupt end. After a 40% price increase driven by a significant surge in trading volume, SHIB has given up most of its gains. The sudden reversal has cancelled what was expected to be the token's third-biggest recovery rally of 2026.

The rally initially appeared convincing, with one of the biggest daily volume spikes of the year pushing SHIB through its short-term moving averages. This kind of volume expansion often signals new capital entering the market rather than just short-covering, giving bulls hope that the protracted downtrend may finally be coming to an end.

However, sellers aggressively intervened near the 100-day EMA at $0.00000503, rejecting the price before SHIB could firmly establish a foothold above the moving average. The token has since fallen back below that barrier, indicating that buyers were unable to sustain the initial spike.