Shiba Inu continued to trade under pressure over the weekend as the broader crypto market pulled back, despite several bullish on-chain signals emerging for the meme-coin. SHIB was trading at $0.0000090 at press time, hovering just above a key support zone at $0.00000853 and sitting 65% below its yearly high.
burn rate accelerates sharply
Shiba Inu’s burn activity surged on Saturday, with data from Shiburn showing a nearly 2,000% increase as over 4.14 million SHIB were incinerated. The spike was driven by two large transactions — one burning 2.14 million tokens and another removing 1.97 million from circulation.
This follows a series of sizable burns earlier in the week, including 180 million SHIB incinerated on Wednesday and 621 million the day before.
Token burns are generally viewed as a positive long-term signal, as they reduce circulating supply and slow inflation. While not equivalent to corporate share buybacks — which directly boost earnings per share — burns can still improve token scarcity over time.
exchange reserves continue to decline
On-chain data also shows SHIB holdings on centralized exchanges continuing to fall. Total exchange reserves now stand at 285 million tokens, down from 295 million in August.
Lower exchange balances often suggest investors are choosing to hold rather than sell, which may reduce immediate selling pressure during market downturns.
Shibarium recovers post-exploit
Shibarium, Shiba Inu’s Layer-2 network, has also shown signs of recovery following the recent ShibaSwap exploit. Total value locked (TVL) on the network has surged 124% over the past 30 days, surpassing $1.8 million.
Rising activity on Shibarium may support long-term ecosystem growth, though it has yet to meaningfully influence SHIB price action in the short term.
Shiba Inu price technical analysis
On the daily chart, SHIB has dropped from its May high of $0.00001756 to $0.0000090, forming a descending triangle pattern. The lower boundary of this structure sits near $0.00001020 — a level the token recently broke below.
SHIB remains under both the 50-day and 25-day exponential moving averages, reinforcing the bearish momentum.
On the upside, the token is still holding above the key support zone around $0.0000085 — its lowest level in both October and November.
If SHIB loses this support, the next downside target could be $0.0000050. A decisive breakdown below $0.0000085 would confirm this outlook.
Conversely, a move back above the $0.000010 resistance area would invalidate the bearish scenario and open the door to a short-term recovery.
