Shiba Inu extended its 2026 rally after gaining 13% on Sunday, reinforcing bullish sentiment across the meme coin market. The move followed a prolonged period of price compression that limited directional conviction. Traders now interpret the advance as a structural shift rather than a temporary spike. Analysts tracking technical patterns and market positioning say conditions increasingly support further upside.
Technical Breakout Signals Trend Expansion
Shiba Inu’s latest rally followed months of consolidation inside a descending wedge formation. The pattern developed as prices posted lower highs while maintaining gradually rising lows. Market analysts said such formations often reflect seller exhaustion instead of sustained downside pressure. As the wedge tightened, momentum indicators began diverging from price movement.
Crypto analyst JAVONMARKS said on X that bullish divergence emerged before the breakout. He explained that the oscillator printed higher lows even as the price drifted lower. That setup indicated weakening downside momentum ahead of price confirmation. He added that the momentum indicator broke its downtrend before the price followed, which often serves as a leading signal.
The breakout above the wedge resistance marked a transition from compression to expansion. Analysts said price exits from confined ranges can accelerate as short positions unwind. Buyers waiting for confirmation also tend to enter after such breaks.
The projected target near $0.000032 aligns with previous supply zones and the measured move calculation. This represents a potential 246% gain from current levels. Analysts stressed that projections reflect technical structure rather than guaranteed outcomes.
Wallet Concentration and Derivatives Data Support Rally
On-chain data showed a high level of ownership concentration. Santiment reported that the top 10 Shiba Inu wallets control nearly 63% of the circulating supply. The largest single wallet holds about 41% of all tokens, valued at roughly $3.3 billion.
Derivatives market data also supported the bullish case. CoinGlass figures showed traders building leveraged positions around key price levels. The lower boundary sat near $0.0000078, while the upper range reached $0.00000844. These zones attracted heavy intraday exposure.
Long-leveraged positions outweighed shorts. CoinGlass data showed approximately $1.11 million in long exposure compared with $705,550 in short positions. The imbalance suggested expectations for continued upside. However, they warned that concentrated leverage can increase liquidation risk during sudden price reversals.
The combination of a confirmed technical breakout, bullish divergence, and supportive derivatives positioning explains the renewed momentum. Wallet concentration remains a critical variable as price action develops. Traders now monitor follow-through above former resistance as Shiba Inu enters a potential expansion phase.
