Shiba Inu (SHIB) is surging once again after a prolonged period of consolidation. Early Wednesday, it climbed over 13% to tap $0.00001564 and extend its weekly gains. Despite the prior stagnation, several underlying factors suggest the asset may be gearing up for an even larger breakout. One of the most compelling signals comes from CryptoQuant data, which reveals a sharp decline in SHIB’s exchange reserves. At the start of 2025, centralized exchanges held roughly 135.3 trillion SHIB tokens. That number has since plummeted to just 96 trillion, indicating a shift toward accumulation and a significant reduction in selling pressure. Notably, a dwindling exchange supply is often seen as a bullish indicator, reinforcing the idea that investors are opting to store their holdings rather than liquidate them, a sign of growing confidence in SHIB’s long-term potential . Moreover, onchain data also shows an explosive growth of ShibaSwap, the ecosystem’s decentralized exchange. Over the past week, trading volume on the platform has surged by around 245%, reaching $10.09 million and outpacing key competitors like PancakeSwap and Hashflow. 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. That said, with exchange reserves drying up and on-chain activity accelerating, analysts are also turning 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 pundit’s analysis, SHIB could rally 12,000% from current levels, reaching a target of $0.0001831. He believes key resistance points, particularly around $0.00003117 and $0.00008717, will play a crucial role in determining whether this breakout materializes. Notably, Lucie, Shiba Inu’s lead market strategist, agreed with CryptoELITES’ analysis, suggesting that SHIB’s upside potential could extend even further. Elsewhere, 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. That said, with technical indicators aligning, exchange supply tightening, and ecosystem growth accelerating, SHIB appears poised for an explosive move. At press time, the token was trading at $0.00001423, reflecting a 4.65% surge in the past 24 hours.
