Shiba Inu (SHIB) Burn Rate Spikes Over 6500% in 24 Hours, Exchange Reserves Drop to 96T — Technicals Hint at Bullish Breakout

Shiba Inu (SHIB) witnessed a major spike in its token burn activity over the past 24 hours. According to data from the burn tracking platform Shibburn, more than 28 million SHIB tokens were burned in the past 24 hours. This marks a 6,503.83% increase compared to the day before. In simple terms, burning means sending tokens to an unusable wallet, effectively removing them from circulation. The goal is to reduce the total supply and create scarcity, which could support price growth if demand rises. However, the SHIB burn rate over the past week dropped by over 80%, meaning this surge was unusual and likely driven by a one-time event or coordinated effort by the community. Such spikes are often short-term but can still have a psychological effect on investor sentiment. Shiba Inu Exchange Reserves Drop to Multi-Year Lows Alongside the burn activity, another long-term bullish signal for Shiba Inu is emerging from on-chain data. Data from CryptoQuant shows SHIB’s total exchange reserves have fallen to 96.1 trillion tokens, the lowest level in years. Back in mid-2022, reserves were around 190 trillion, meaning more than 90 trillion tokens have been moved off exchanges. This trend indicates that holders are withdrawing their tokens from trading platforms and likely storing them in private wallets. When traders do this, it usually means they’re not planning to sell anytime soon. Instead, they may be preparing for long-term holding or staking opportunities. Lower exchange reserves often reduce the immediate selling pressure in the market. With fewer tokens readily available on exchanges, sudden sell-offs become less likely. As SHIB’s supply on exchanges thins out and burn activity picks up, traders are increasing their speculative exposure. Open Interest in SHIB futures has surpassed $150 million—a sign that traders are getting more involved. A rising open interest, especially during a period of stable prices, suggests new money is entering the market. It often reflects growing interest in short-term gains, and it can also amplify price moves when combined with leverage. This increase, together with the drop in exchange reserves, creates a setup where a price move in either direction could be more extreme for Shiba Inu. You May Also Like: Bitcoin Price Rally Falters, But ETF Inflows And On-Chain Indicators Bullish What Technicle Indicators Say? Shiba Inu (SHIB) is currently trading near $0.00001560, showing a modest decline of around 1% in the last 24 hours. Despite short-term volatility, it remains above its 20-day EMA and 50-day EMA, indicating the price is still in a relatively strong position. The Relative Strength Index (RSI) is around 63, suggesting that SHIB is close to entering overbought territory. If RSI crosses above 70, it may signal the price is overextended and due for a pullback. If SHIB can break and close above its 200-day EMA, the next potential resistance is near $0.00001850. On the downside, holding the $0.00001420–$0.00001367 range is crucial to avoid a deeper correction toward $0.00001280. But for now, SHIB is holding key support levels, and that supports the case for more upside if buying pressure remains strong.