Key Insights:
Shiba Inu Coin surged 35% from its yearly low, driven by higher burn rates and increased futures market activity.
The token burn rate spiked 278% in 24 hours, removing over 15.2 million SHIB from circulation to reduce supply.
Futures open interest reached $145 million, signaling rising trader confidence and renewed speculative activity.
The SHIB token reached $0.0000093 on Tuesday, marking a 35% gain from its lowest point in 2023. This increase pushed the meme coin’s market capitalization to over $5.5 billion. The price rebound follows sustained bullish momentum and investor confidence in the token's long-term supply strategy.
Data from Shibburn shows that over 15.2 million SHIB tokens were permanently removed from circulation in 24 hours, reflecting a 278% rise in burn rate. The total number of tokens burned now exceeds 410 trillion, while the circulating supply stands at approximately 585 trillion. Token burns are intended to enhance scarcity by reducing supply.
Exchange Supply Declines Sharply
According to on-chain data from Nansen, the number of SHIB tokens held on exchanges has dropped to its lowest level in several months. A declining exchange supply typically indicates a shift toward self-custody and reduced short-term selling pressure.
Source: TradingView
Open interest in SHIB futures has surged to $145 million, the highest since October 10. This level marks a strong recovery from the year-to-date low of $79 million. The spike in open interest signals growing trader involvement and confidence in further price movement.
Technical Pattern Signals Bullish Outlook
Shiba Inu’s price movement on the daily chart shows a falling wedge formation, which is often a bullish reversal signal. The token rose from a recent low of $0.00000684 to $0.000010, breaking above the wedge pattern. Technical indicators such as the Relative Strength Index and the Stochastic Oscillator have also shown upward momentum, suggesting continued strength.
With these positive developments, analysts are pointing to $0.000014 as the next key resistance level. This price point was last reached in September and could serve as the next potential target if the bullish momentum continues.
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