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- Shiba Inu’s token burns have spiked by 2,000%, signaling potential long-term support for SHIB.
- Reduced exchange reserves indicate investor confidence, as fewer SHIB tokens are available for sale.
- SHIB’s technical chart suggests short-term weakness, with critical support levels at $0.0000085 and $0.000010.
Shiba Inu (SHIB) is back in the spotlight, capturing the attention of crypto traders as a mix of token burns and shrinking exchange reserves create renewed interest. Despite a 65% drop from its peak earlier this year, SHIB has held steady around $0.0000090, just above a critical support level of $0.00000853. As SHIB’s burn rate skyrockets and exchange supplies shrink, traders are left wondering: Could Shiba Inu stage a comeback, or is further decline on the horizon?
Shiba Inu burn metrics spike 3,615% in the last 24 hours 🔥🔥🔥 $SHIB https://t.co/5geTPihjXR
— Shib Spain (@ShibSpain) November 13, 2025
Token Burns Fuel SHIB’s Bullish Sentiment
One of the most significant catalysts behind SHIB’s recent attention is the surge in token burns. According to Shiburn data, Shiba Inu saw an astonishing 2,000% increase in the burn rate on a single day, removing 4.14 million tokens from circulation. On other days, millions more were incinerated by the community, with individual users burning tokens worth over $1.9 million. These burns are seen as a positive move in the crypto world, as reducing the circulating supply can help curb inflation and generate scarcity—driving value for holders.
Similar to stock buybacks, token burns don’t directly increase SHIB’s earnings but psychologically support price stability. The reduced supply could motivate current holders to retain their tokens, helping stabilize the price in volatile markets. This trend has ignited new optimism among crypto investors, with many hoping these actions will contribute to long-term growth for the token.
Shrinking Exchange Reserves Signal Investor Confidence
Another bullish factor for Shiba Inu is the steady decline in exchange reserves. As of November 2025, only 285 million SHIB tokens remain on exchanges, down from 295 million in August. This reduction indicates that investors are holding onto their tokens instead of rushing to sell during price dips, suggesting a belief in SHIB’s potential for a price recovery. As the supply on exchanges tightens, a rise in demand could fuel upward momentum, providing further support for SHIB’s price.
Technical Indicators and Market Outlook
Despite the positive news surrounding token burns and exchange reserves, technical indicators present a mixed outlook for Shiba Inu. On the daily chart, SHIB’s price has declined significantly from its May highs of $0.00001756, creating a descending triangle pattern. This pattern suggests short-term weakness, with support at $0.0000085 being critical for the coin’s future price movement. If SHIB falls below this support level, it could face further declines toward $0.0000050. However, if SHIB rises above $0.000010, it could trigger renewed buying interest, potentially reversing the bearish sentiment.
Also Read: Shiba Inu Partners with TokenPlayAI to Boost SHIB’s Utility
Furthermore, Shiba Inu’s Shibarium network has seen improvements, with total value locked (TVL) increasing 124% over the past 30 days. These developments strengthen the network’s credibility, offering potential upside for SHIB holders if user activity continues to grow.
Shiba Inu’s outlook remains uncertain, with both bullish and bearish factors at play. The increase in token burns and the reduction in exchange reserves provide a foundation for optimism, while the technical chart signals caution. For now, traders should closely monitor key support and resistance levels—$0.0000085 and $0.000010—to determine the next major move for SHIB. Whether SHIB will rebound or slide further hinges on these critical levels, and it will be up to traders to decide which direction the coin will take in the coming weeks.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
