Shiba Inu Surges 13% as Exchange Reserves Decline 30%

Shiba Inu (SHIB) has recently experienced a significant surge in value, climbing over 13% to reach $0.00001564 early Wednesday, extending its weekly gains. This surge comes after a period of consolidation, during which several underlying factors have suggested that the asset may be on the verge of an even larger breakout.

One of the most notable indicators is the sharp decline in SHIB’s exchange reserves. At the beginning of 2025, centralized exchanges held approximately 135.3 trillion SHIB tokens. This number has since decreased to 96 trillion, indicating a shift towards accumulation and a significant reduction in selling pressure. This dwindling exchange supply is often seen as a bullish indicator, suggesting that investors are opting to hold their tokens rather than liquidate them, which is a sign of growing confidence in SHIB’s long-term potential.

Additionally, onchain data reveals an explosive growth in ShibaSwap, the ecosystem’s decentralized exchange. Over the past week, the trading volume on the platform has surged by around 245%, reaching $10.09 million. This outpaces key competitors and highlights the increasing activity within the Shiba Inu ecosystem. The platform’s total value locked has also skyrocketed from $2.98 million in February to $68 million, with liquidity pools expanding significantly as more participants contribute to the ecosystem.

With exchange reserves drying up and on-chain activity accelerating, analysts have turned increasingly bullish. On Tuesday, analyst CryptoELITES pointed to the formation of a classic cup-and-handle pattern, historically a strong indicator of massive upside potential. According to the analyst’s analysis, SHIB could rally 12,000% from current levels, reaching a target of $0.0001831. Key resistance points, particularly around $0.00003117 and $0.00008717, will play a crucial role in determining whether this breakout materializes.

Lucie, Shiba Inu’s lead market strategist, agreed with CryptoELITES’ analysis, suggesting that SHIB’s upside potential could extend even further. Analyst Javon Marks echoed these projections, suggesting SHIB could climb to $0.0001553 based on Fibonacci extension levels. He noted that despite the asset already showing signs of strength, its current breakout structure leaves room for a much larger move. A run toward $0.000081, in his view, would represent a 415% gain, with even higher targets in play if momentum continues.

With technical indicators aligning, exchange supply tightening, and ecosystem growth accelerating, SHIB appears poised for an explosive move. At the time of reporting, the token was trading at $0.00001423, reflecting a 4.65% surge in the past 24 hours. The combination of these factors suggests that SHIB is likely to experience significant growth in the current cycle, potentially reaching new heights as investor confidence and ecosystem activity continue to rise.