- SHIB exchange reserves hit an all-time low, signaling reduced sell pressure.
- SHIB price eyes a breakout as long-term holders accumulate more tokens.
Shiba Inu (SHIB) has faced a turbulent market in recent months, struggling to maintain its bullish momentum. Despite a brief recovery today, the meme coin has dropped by 21% over the past 30 days.
While SHIB saw gains in late 2024, it failed to sustain them into 2025. However, on-chain data suggests that the asset may be on the verge of a major breakout as exchange reserves reach an all-time low.
Shiba Inu Exchange Reserves Hit Record Low
At the time of writing, Shiba Inu was trading at $0.00001304, following a 2.35% increase in the last 24 hours. This rise came as a surprise, given that most cryptocurrencies were experiencing losses. According to data from CryptoQuant, SHIB’s exchange reserves have declined to 93.573 trillion tokens, representing just 15.88% of its circulating supply.
The metric tracks the amount of SHIB held by exchanges such as Binance, Coinbase, and Crypto.com. The decrease suggests that more investors are transferring their SHIB holdings to private wallets, indicating long-term confidence. When traders withdraw assets from exchanges, liquidity tightens, reducing sell pressure and potentially driving prices higher.
Burn Rate Surges as Long-Term Holders Accumulate
In addition to declining exchange reserves, Shiba Inu has witnessed a massive spike in its burn rate. Data from ShibBurn reveals that over the past 24 hours, the burn rate surged by 62,000%, fueled by a single transaction that sent 460 million SHIB tokens to a dead wallet. Since its inception, over 410 trillion SHIB tokens have been burned, bringing the circulating supply to approximately 584 trillion.
Furthermore, IntoTheBlock data shows that the number of long-term SHIB holders has reached a record high of 1.09 million addresses. These investors, who have held the asset for over a year, play a key role in stabilizing the market by reducing selling pressure. Historically, an increase in long-term holders correlates with a potential bullish breakout.
Shiba Inu Price Outlook and Key Resistance Levels
Technical indicators suggest that SHIB could be on the verge of a strong upward move. The daily chart shows a falling wedge pattern, a bullish formation that often precedes a breakout. The asset’s price has converged at $0.00001260, aligning with historical support levels from July, August, and September 2024.
Additionally, the Relative Strength Index (RSI) has risen above its descending trendline, signaling a potential shift in momentum. If SHIB surpasses the $0.00001380 resistance level, it could target $0.000020, marking a 60% increase.SHIB could reach $0.000081 in the coming months if momentum sustains. Market analysts are bullish on SHIB’s price, predicting a breakout could push SHIB toward $0.000081, a 500% upside from current levels.
$SHIB breakout confirmed?
Crypto analyst @JavonTM1 stands by his 500% price target for Shiba Inu as trading volume explodes.
Is this the start of a massive rally?
Read more👇https://t.co/4iIoJQD4Tn
— The Shib (@TheShibmagazine) March 17, 2025
Macroeconomic factors may also influence SHIB’s trajectory. A potential Federal Reserve interest rate cut could drive a broader market rally, benefiting Bitcoin, Shiba Inu, and other cryptocurrencies. Additionally, political developments, such as changes in Trump’s tariff policies, may impact market sentiment.
