Shiba Inu price jumps — what’s behind today’s move (January 5)

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Shiba Inu Surges 10.03% Today

Highlights

Shiba Inu is upgrading its Shibarium network with Fully Homomorphic Encryption (FHE) to improve user privacy after a $4 million exploit in September 2025.
Over 40% of SHIB's total supply has been burned, and the burn rate has accelerated by more than 50% since 2022.
Shiba Inu is expanding its utility through a TokenPlay AI partnership to enable no-code app and Web3 gaming solutions, with Shibarium surpassing 1.5 billion transactions.

Network upgrades and accelerated token burns drive renewed market optimism

Shiba Inu is implementing significant upgrades to its Shibarium network, including the addition of Fully Homomorphic Encryption (FHE) to enhance user privacy following a $4 million exploit in September 2025 that exposed transparency issues. Over 40% of SHIB's total supply has been burned, with the burn rate accelerating more than 50% since 2022, and the network has processed more than 1.5 billion transactions. Development efforts continue to increase Shiba Inu's utility through a partnership with TokenPlay AI to support no-code app and Web3 gaming solutions.

Anton Kharitonov, expert at Traders Union, sees the current SHIB rise as technically vulnerable. He notes the overbought oscillator readings and the sharp 10.03% move as signals of speculative exhaustion. Kharitonov remains wary of the accelerated burn rate and privacy enhancements, viewing these as reactions to recent network weaknesses rather than genuine strength. He is critical of the network’s ability to maintain momentum, pointing to the neutral MACD and strong resistance at the MA-200. "In my view, unless SHIB decisively clears 0.00001102, sellers are likely to regain control and a pullback is imminent."

Viktoras Karapetjanc, expert at Traders Union, remains confident in SHIB's evolving network fundamentals. He sees the integration of Fully Homomorphic Encryption and rising burn rate as evidence of robust developer commitment and growing use cases. Karapetjanc believes that increased transaction volume and new partnerships support a sustained bullish narrative. He expects further innovation will attract greater adoption and keep upward momentum alive. "The bullish structure remains intact and I anticipate further growth as network utilities expand and investor confidence deepens."

Jainam Mehta, market strategist, takes a scenario-focused approach given SHIB's mixed momentum. He highlights the neutral MACD and overbought oscillators, suggesting potential for a near-term pullback but also a tactical upside if MA-200 is broken. Mehta notes that ongoing network upgrades may cause renewed volatility, creating short-term trading setups. "If SHIB decisively breaks above 0.00001102, a tactical long could materialize — but until then, I would emphasize range-bound strategies."

Overbought signals and volatile gains as trend strength diverges

Momentum indicators show mixed signals. ADX signals a bullish bias but at a moderate trend strength, while the MACD is neutral, highlighting some uncertainty in ongoing momentum. RSI is in bullish territory, while Stoch RSI and CCI indicate strong overbought conditions. Bull Power (BBP) suggests buyers are dominating on the day. The Awesome Oscillator remains neutral and does not add weight to the current trend. Today's price shows a sharp 10.03% rise, with barely any gap at the open and with the current price near the top of today's range, signifying high volatility and intraday strength toward the highs. Despite bullish price action, the overbought readings across oscillators and a neutral MACD call for caution as price strength and momentum are not fully aligned.

Previously it was reported that Shiba Inu was trading above short- and medium-term moving averages, showing strengthening bullish momentum while long-term resistance remained a barrier. Momentum readings were mixed as daily MACD and oscillators such as RSI and Stoch RSI indicated potential for near-term corrections, with dynamic support provided by the Ichimoku Kijun and resistance now at the MA-50 limiting further upside.

Source of Data: SHIB Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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