SHIB Explodes 35% in a Week: $2.3 Million Short Squeeze Wipes Out Bears as Meme Coin Roars Back

In a stunning reversal, Shiba Inu (SHIB) has skyrocketed over 35% this week, igniting a vicious short squeeze that has liquidated $2.3 million in short positions. The dog-themed meme coin, now trading near $0.0000057 after months of stagnation, delivered its most powerful weekly rally in years, catching bears completely off guard. This explosive breakout signals that SHIB is breaking free from its multi-year downtrend, with intraday charts flashing critical breakout levels that every trader must watch.

Multi-year downtrend under pressure

SHIB previously reached its peak around $0.0000340 in December 2024, followed by an extended downtrend throughout 2025. The price consistently hit lower highs, remaining firmly below a dominant descending trendline for several months.

The current weekly candle has tested this long-standing downtrend for the first time since its formation. Over the last seven days, SHIB bounced from a low of $0.00000409 and began challenging the trendline anchored to 2025’s highs. Despite the recent move, the token has yet to secure a decisive weekly close above the trendline, with price wicks briefly breaching it but failing to maintain momentum.

Notably, even after the swift rally, SHIB remains far below key resistance levels. The 23.6% Fibonacci retracement of the decline from 2024 to 2026 stands at around $0.0000269, well above the current price. The weekly Relative Strength Index (RSI) has only just lifted from the low 30s, indicating that, while a significant bounce has occurred, the recovery of the overall trend remains uncertain.

Short squeeze triggers rapid move

Recent derivatives data points to a classic short squeeze as the catalyst for the price jump. Over the past day, SHIB futures liquidations reached $2.32 million, with short sellers accounting for $1.77 million of that total. Net inflows to SHIB futures markets soared by more than 2,000%, and open interest stands near $64.7 million, reflecting intense trading activity and volatility.

Futures market flows confirm a major short squeeze, as liquidation volumes and open interest both climbed rapidly. Substantial numbers of participants were caught too heavily short in a market swiftly reversing direction.

According to technical data, this was less a reaction to fundamental news and more a byproduct of market positioning and leverage, with traders forced to close out losing positions as prices jumped.

Intraday charts highlight key breakout moves

Examining the 15-minute SHIB chart, the rally unfolded over two major legs. The initial surge propelled SHIB from approximately $0.0000042 to nearly $0.00000504, after which a brief consolidation formed a bullish flag pattern.

The pullback after this first move only barely dipped below the 23.6% Fibonacci level for the leg, giving way to renewed buying that ignited the second breakout. An ascending trendline has so far supported the rally, signifying persistent buying during minor retracements.

Intraday RSI peaked at about 87 during the initial push, indicating strong momentum. Although it cooled during consolidation, the RSI remains elevated in the high 70s, suggesting ongoing bullish pressure but also leaving room for increased volatility if momentum weakens.

Crucial levels for traders to monitor

The immediate area to watch now is the descending 2025 trendline, which sits close to the current trading price. A confirmed weekly close above this threshold would be the first in over a year and could signal further upside. On lower timeframes, the $0.0000048 flag low serves as key support; a break below this could negate the short squeeze narrative and put downward pressure back on SHIB.

For traders and investors seeking to stay ahead of rapid market shifts, monitoring technical indicators such as trendlines and RSI becomes essential. To streamline this process, CryptoAppsy offers a single-screen solution integrating real-time price tracking, detailed charts, multi-currency portfolios, and customizable price alerts. Users can also filter news for specific tokens, discover newly listed altcoins, and monitor global macroeconomic indicators like Fed interest rates—all features designed to keep market participants informed and proactive in fast-moving environments.

As always, these observations reflect an analysis of charts and on-chain metrics; past trendline breaks have not always led to sustainable rallies for SHIB. The token’s next moves will depend on whether it can hold above key technical levels in the coming sessions.

Even after the sharp weekly gain, SHIB’s price remains well below major resistance levels, with technical metrics suggesting the token has rebounded from oversold conditions rather than shifting into a confirmed bull trend.