Shiba Inu has moved above its 200-day moving average, breaking an 11-month downtrend that has run since September last year.

U.Today, a blockchain outlet, reported on Monday that Shiba Inu has found stability in a $3.22 billion to $3.26 billion market-cap range. It also showed signs that this band is shifting from a former resistance level to a new support level.

Based on TradingView, Shiba Inu moved above the 200-day moving average, shown as a red line on the chart, and has held above it. It is the first time this has happened in 2026.

The rebound is not driven by technical signals alone. Japan's Financial Services Agency granted a crypto service provider licence to Nomura-backed Laser Digital and included Shiba Inu among approved assets for institutional investors. That effectively gives Shiba Inu an official entry into Japan's regulated market.

In the futures market, a large short squeeze supported the rise. Short positions betting on a drop in crypto prices were liquidated for $3.1 billion, bringing in buying to limit losses and pushing up prices in the spot market.

The price action has also stood out. Shiba Inu has typically weakened toward the end of summer, but it has gained 15.9 percent in August, its best performance in the past 5 years. Its year-to-date return for the third quarter has also reached a record 30.1 percent.

Competition in market-cap rankings is also intensifying. Shiba Inu is now ranked 27th on CoinMarketCap and has already overtaken Avalanche (AVAX). A further rise of about 1.2 percent from current levels would allow it to surpass Sui (SUI). Daily trading volume stands at $146.2 million, and market liquidity remains at a solid level.

The key question is whether it can hold this support level. Shiba Inu has posted an average October return of 167.5 percent, its strongest performance of the year. Analysts see the ability to maintain the current support as a potential base for additional gains in autumn.

Near-term focus is narrowing to whether it can hold support in the $3.2 billion market-cap range, whether further demand will flow in from its entry into Japan's regulated system and its attempt to re-enter the top 25 by market cap. If the current momentum continues, some are raising the possibility that Shiba Inu could return to the top 25 this autumn.