Shiba Inu Price Rally Faces Q1 Breakout Test After 30% Jump

The Shiba Inu price has opened 2026 with a sharp rebound. SHIB is up nearly 30% in the first week of the year and almost 48% from December 31 lows.

The move stands out after a weak year, but on-chain data shows this rally may be a paused downtrend, not a confirmed breakout yet, unless one group of buyers comes in.

Meme Coin Sector Push, Not Spot Buying, Drove SHIB’s Rally

The SHIB rally lines up closely with a broader surge in meme coins. Over the past seven days, the meme coin sector has been up roughly 23%, and the Meme Season Index has climbed near 80%, a level often linked with short-term meme momentum.

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The meme season index is now close to the early November levels, post which a correction ensued.

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This matters because SHIB appears to be moving as part of a sector-wide beta trade rather than project-specific accumulation. In beta rallies, capital flows into liquid meme tokens as a basket rather than through targeted conviction buying.

Whale data support this view. Since December 31, the whale-held SHIB supply has declined from approximately 667.2 trillion tokens to 666.2 trillion tokens, a reduction of about 1.0 trillion SHIB. At current prices, this equals roughly $9 million worth of whale selling.

Whales often sell into strength during fast rallies. In this case, whale selling did not prevent prices from rising, indicating that broader meme inflows were strong enough to absorb it — a clear indicator of a beta rally.

In short, SHIB’s early-2026 rally was driven by meme-sector momentum, not fresh whale accumulation. But there could be retail buying support, right?

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Profit-Taking Explains the Pullback, Not Panic

On-chain coin activity suggests that even retail support may have been absent.

Spent Coins Age Band tracks the number of tokens that move on-chain across all holder groups. Between December 31 and January 7, SHIB’s spent coins jumped from about 268.9 billion tokens to 747.1 billion tokens, an increase of roughly 178%.

This indicates that holders across multiple age groups used the rally to move or sell coins into strength, rather than buy. This pattern is typical during beta-driven rallies, where profit-taking rises without triggering panic. And that eventually cooled the rally, pushing the SHIB price into consolidation within an otherwise bullish pole-and-flag formation.

What happened next is more important. After January 7, spent-coin activity declined sharply from 747.1 billion tokens to 146.0 billion tokens, representing approximately an 80% decline. At the same time, the price consolidated. This suggests profit-taking has largely finished, and there haven’t been panic exits.

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Now, the resumption of the rally would also require aggressive dip buying. Selling pressure has cooled, but new demand needs to emerge for the breakout.

What Needs to Change for a Shiba Inu Price Breakout Attempt in Q1

Momentum indicators show that the price pullback was a base case.

The Relative Strength Index, or RSI, showed a hidden bearish divergence into early January, which correctly warned of a pullback. RSI measures momentum strength and, in this case, trended higher between December 7 and January 5, whereas the Shiba Inu price made a lower high.

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But despite the pullback, the Money Flow Index, or MFI, which tracks whether money is flowing into or out of an asset, trended lower. Currently, MFI is drifting lower alongside price, indicating that dips are not being aggressively bought. That has to be the biggest thumbs-down to the breakout expectation.

For a real breakout attempt in Q1, this needs to change. And the coin activity, mentioned earlier, needs to stay low.

From a price perspective, SHIB needs a strong daily close above $0.0000091, followed by confirmation above $0.0000095, to establish a breakout. If momentum returns, the measured move from the prior rally (pole) points toward $0.0000135.

Key resistance levels on the way include the psychological $0.0000100 level.

On the downside, support sits near $0.0000088, followed by $0.0000080 and $0.0000078. A break below these levels would weaken the structure.

For now, the picture is balanced. The rally makes sense as a meme beta move. The pullback aligns with heavy profit-taking and RSI divergence. A Q1 breakout remains possible, but only if money flow (MFI) turns up and dip buyers come in.