Shiba Inu (SHIB) Token Burn Activity Spikes, Exchange Reserves Drop to Multi-Year Lows

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

Shiba Inu (CRYPTO: SHIB) saw a major spike in its token burn activity over the past 24 hours. According to data from the burn tracking platform Shibburn, over 28 million SHIB tokens were burned in the past 24 hours. This marks a 6,503.83% increase compared to the day before.

For those unfamiliar, 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 dropped by over 80% over the past week, meaning this surge was unusual and likely driven by a one-time event or a coordinated effort by the community.

Shiba Inu Exchange Reserves Drop to Multi-Year Lows

Another long-term bullish signal for Shiba Inu is emerging from on-chain data. As of Monday morning, SHIB’s total exchange reserves have fallen to 96.1 trillion tokens, reaching the lowest level in years, according to data from CryptoQuant.

For context, 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.

Shiba Inu Futures Open Interest Spikes

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.

Shiba Inu Price Action: SHIB is currently trading at $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.