Shiba Inu is witnessing renewed buying momentum across cryptocurrency spot and derivatives markets, pushing the token above $0.0000060 on Tuesday following an impressive advance of more than 10% in the preceding session. The positive price movement is being underpinned by a concurrent expansion in daily trading volume, an increase in open interest, and funding rates flipping in favor of aggressive buyers. Technical indicators reflect that momentum remains in the hands of market bulls, setting up conditions for a potential continuation of the current rally.
Derivatives Metrics Point to Bullish Conviction
Market positioning in perpetual futures reveals a clear shift in sentiment toward the meme coin. On September 16, the funding rate for SHIB flipped positive and reached 0.0099% on Tuesday. In derivatives trading, a positive funding rate indicates that long position holders are paying fees to short position holders, an arrangement that typically signals dominant bullish sentiment across the market. Coupled with rising trading activity and expanding open interest, the data highlights that traders are injecting fresh liquidity rather than simply closing out historical positions.
Technical Structure and the 200-Day EMA Breakout
Price action recorded a substantial structural achievement on Monday when the asset surged over 10% to secure a daily close above its 200-day Exponential Moving Average (EMA), located at $0.0000056. By Tuesday, SHIB extended those gains toward $0.0000062, positioning the token right against a key descending trendline zone.
If market participants manage to trigger a decisive breakout and daily close above this descending trendline threshold around $0.0000063, the upward move could gain further momentum toward the next significant resistance boundary positioned at $0.0000068. Conversely, if sellers reassert control and an intraday pullback develops, the 200-day EMA at $0.0000056 represents the initial downside support cushion that buyers would need to defend.
RSI and MACD Confirm Strengthening Trend
Oscillators and momentum gauges continue to validate the ongoing recovery. The Relative Strength Index (RSI) is advancing upward toward the overbought threshold of 70, reflecting sustained buying pressure without yet signaling terminal exhaustion. Simultaneously, the Moving Average Convergence Divergence (MACD) indicator registered a bullish crossover on Saturday that remains entirely intact. The accompanying green histogram bars are expanding in height, presenting visual confirmation that bullish control remains active across short-term timeframes.
Pepe Sees Short Squeeze While Broader Meme Coins Move
The broader meme coin landscape has experienced heightened volatility alongside Shiba Inu. Pepe surged nearly 30% over the last 24 hours, standing out as one of the top gainers across the digital asset ecosystem. Derivatives market data revealed that a short squeeze exceeding $2 million unfolded during the same timeframe, forcing bearish speculators to liquidate their positions and buy back tokens. Technical indicators for PEPE demonstrate strengthening momentum and an ongoing upside bias.
Market Context: Bitcoin, Ethereum, and Large-Cap Altcoins
Broader market conditions have provided a constructive backdrop for altcoins. Bitcoin remains well-supported above $85,000, bolstered by steady institutional capital inflows, Strategy executing its first direct BTC acquisition since August, and alternative regulatory paths unfolding after the CLARITY Act failed to advance. In parallel, artificial intelligence themed tokens such as Bittensor (TAO) and FET emerged among the top-performing assets over the past 24 hours.
Payments-focused tokens Ripple (XRP) and Stellar (XLM) stabilized after posting gains of nearly 9% at the onset of the trading week. While momentum indicators continue to support further upside for both assets, mixed signals across derivatives platforms suggest traders are proceeding with a degree of caution to verify whether the recent upswing can be maintained.
Ethereum demonstrated resilient dip-buying behavior by climbing above $2,700 on Monday. The second-largest cryptocurrency had slid below $2,400 during the previous week as negative sentiment swept the sector following the CLARITY Act's stagnation in the Senate and interest rate hikes implemented by the Federal Reserve. However, long-term holders actively defended Ethereum's on-chain realized price, which represents the aggregate network cost basis situated at $2,310, enabling the asset to rebound aggressively above $2,700.
