The meme token Shiba Inu (SHIB) has kicked off 2026 with a bullish tone, and technical indicators suggest it may be gearing up for a significant rally. Currently trading in the 700–750 range, this level has historically served as a strong support zone, sparking major price surges in both 2021 and 2024.
SHIB Supply Drops as Burn Rate Accelerates
SHIB’s daily burn rate skyrocketed by an astonishing 10,728%, removing over 173 million SHIB from circulation in a single day. At the same time, more than 200 billion tokens were withdrawn from exchanges, bringing the total exchange supply down to 81 trillion, or roughly 14% of the total circulating supply – a level comparable to Bitcoin and Ethereum. This tightening supply is adding fuel to bullish sentiment and increasing optimism for a short-term rally.
Despite a difficult 2025, the SHIB community continues to grow. Over 70,000 new holders joined over the past 12 months, pushing the total to 1.54 million wallets. Long-term investors have steadily accumulated tokens, withdrawing 60 trillion SHIB from exchanges, signaling strong confidence in the memecoin’s long-term potential.
Golden Cross on the Horizon – A Signal for a Massive Rally?
A major bullish signal to watch is the potential formation of a golden cross, where the 50-day EMA crosses above the 200-day EMA. Although this crossover hasn’t happened yet – the 50-day EMA still sits below the 200-day – price action is slowly trending in the right direction. Historically, golden crosses are seen as reliable indicators of strong upward momentum, especially when they follow periods of consolidation rather than sudden spikes.
To trigger this pattern, SHIB must break out of its descending wedge and sustain levels above 820. Technical indicators such as narrowing candle ranges and formations like the inverse head-and-shoulders suggest supply absorption and base building – ideal conditions for a golden cross to emerge.
SHIB Short-Term Price Outlook
Momentum indicators, such as the 12-hour stochastic RSI, have started to turn bullish. Combined with a strong demand zone, shrinking exchange supply, and ongoing accumulation by holders, SHIB appears poised for a short-term rebound. If the token maintains support and builds upward momentum, the golden cross could materialize in late 2026, potentially marking the beginning of a sustained uptrend.
Current projections suggest SHIB could reach $0.0000085 by the end of January 2026, representing around 25% upside from current prices. While short-term volatility remains possible, the combination of strong support, accelerating burns, growing holder base, and the approaching golden cross pattern paints a bullish picture for Shiba Inu at the start of the year.
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