- SHIB’s rally shows low selling pressure, but whale accumulation remains weak.
- Pepe’s surge is backed by volume, signaling strong short-term momentum.
- Memecoin dominance is rising, hinting at a broader speculative rotation.
Memecoins are wasting no time reclaiming attention in the new year. Shiba Inu (SHIB) and Pepe (PEPE) have both posted sharp gains in early January, riding a broader risk-on move across crypto markets. Bitcoin’s rebound above $90,000 has helped set the tone, but on-chain data suggests the memecoin rally is being driven more by short-term momentum than deep-pocketed conviction.
Shiba Inu Rallies, but Whale Activity Raises Questions
Shiba Inu climbed more than 26% since the start of the year, including a strong single-day jump on January 4. The move coincided with Bitcoin’s bounce, giving SHIB renewed bullish momentum after weeks of sideways trading.
On-chain data shows that SHIB’s supply remains heavily concentrated. The top 10 wallets control over 60% of the total supply, although one long-inactive wallet tied to a historic burn accounts for a large share. That context matters, but it doesn’t change a key trend: large SHIB holders have been slowly declining in number since late November.
Meanwhile, smaller wallets continue to grow. This points to retail-driven demand rather than sustained whale accumulation. Recent price gains have also come with relatively low on-chain selling pressure, suggesting holders aren’t rushing to take profits yet. That dynamic leaves room for further upside, but it also makes the rally more vulnerable if sentiment shifts.
Technical Levels Define SHIB’s Short-Term Outlook
From a trading perspective, SHIB has established a short-term bullish trend. High-volume support sits around the $0.0000085–$0.0000087 range, with price recently testing key resistance levels.
As long as SHIB holds above roughly $0.0000078, momentum remains intact. A breakdown below that zone would signal fading demand and a possible return of bearish control. For now, volatility favors active traders, even if longer-term conviction remains uncertain.
Pepe Explodes Higher as Memecoins Regain Favor
Pepe has been the standout performer, surging roughly 76% in a single week. The rally broke a prolonged consolidation range and was backed by rising volume, a sign of genuine participation rather than a thin liquidity spike.
Momentum indicators show buyers firmly in control, though the speed of the move increases the odds of short-term pullbacks. Still, Pepe’s strength reflects a broader shift rather than an isolated pump.
Across the sector, memecoins have started 2026 on strong footing. Dogecoin, Shiba Inu, Bonk, Floki, and dogwifhat have all posted solid gains, pushing the total memecoin market cap up nearly 30% in just days.
Also Read: WIF Jumps 13%, but Sellers Lurk — Is the Breakout a Trap?
Memecoin dominance, which hit a low in late 2025, is turning higher again. While it’s too early to declare a full memecoin season, the early signals suggest speculative appetite is returning — fast.
Shiba Inu and Pepe’s rallies highlight renewed interest in memecoins, fueled by Bitcoin’s strength and improving risk sentiment. However, declining whale participation and rapid price moves suggest caution is still warranted. For now, memecoins are back in play — but whether this turns into a sustained trend will depend on what happens next beneath the surface.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. CoinBrief.io is not responsible for any financial losses.
