Shiba Inu Cryptocurrency Ready for 'Uptober'? Falling Exchange Reserves Predict Possible Rally

Shiba Inu is back in the spotlight as October begins. The cryptocurrency is currently trading above $0,000012, after weeks of sideways movement below this price level. Despite this stagnation, on-chain data points to a shift in dynamics that could potentially lead to a breakout in the foreseeable future.

Crypto analyst Zayn recently shared new on-chain data about Shiba Inu custody on social media platform X. He suspects that the meme coin is preparing for what traders are calling 'Uptober'.

Exceptionally Low Exchange Reserves

According to data from on-chain analytics platform CryptoQuant, Shiba Inu reserve stocks on exchanges have fallen to 84,55 trillion tokens, worth approximately $998 million based on the current price of shibThis is significant as it represents the lowest amount of SHIB on cryptocurrency exchanges since 2023, just before the crypto market made a transition from a bear market to a more positive direction.

Furthermore, CryptoQuant's data shows that Shiba Inu reserves on exchanges have been in a constant downward spiral for much of 2025, with large outflows of tokens from exchange wallets. This trend temporarily reversed in September when the price of SHIB attempted to break above $0,0000146, but was rejected. This rejection led to a temporary increase in reserves, likely as short-term investors temporarily returned their holdings to exchanges to sell during the rally.

However, recent data from CryptoQuant shows that outflows from exchange reserves have resumed in recent days. This indicates a significant amount of tokens leaving exchanges and moving to self-custody or staking.

Impact on Supply and Demand

The decline in Shiba Inu reserves on exchanges is crucial because it directly impacts the balance between supply and demand. A shrinking supply of tokens on exchanges typically leads to reduced selling pressure, as fewer holders can quickly sell their tokens.

Furthermore, history shows that significant decreases in reserve levels on exchanges often precede periods of strong accumulation. These accumulation waves often form the basis for price rallies, leading us to believe that the current trend could pave the way for another significant price breakout. Zayn notes that SHIB is currently trading just below a descending resistance trendline, with lower highs and higher highs since May 2025. Optimism surrounding the price development hinges on a breakout above this resistance with higher lows.

SHIB's historical performance in October adds another layer of confidence to price expectations. Since its launch, Shiba Inu has never experienced a red October. Even during the bear market of 2022, SHIB managed to close the month with a profit. This consistent performance, combined with the current decline in Shiba Inu reserves on exchanges, reinforces analysts' belief that SHIB is poised for a significant rally. If the trend continues, October 2025 could well add a new chapter to Shiba Inu's Uptober rallies.

Frequently Asked Questions

Why are Shiba Inu's declining exchange reserves important?
The decline in reserves on exchanges indicates reduced selling pressure and could signal that investors are holding onto their tokens rather than selling them, which could support the price.

What does the 'Uptober' trend mean for Shiba Inu?
'Uptober' refers to the historically strong price action of Shiba Inu in October, when the coin often benefits from bullish sentiment, giving investors hope for a potential rally.

How does Shiba Inu compare to other cryptocurrencies?
Shiba Inu holds a unique position as a meme coin, with a strong community. This, combined with its price stability in October, could make it attractive to traders and investors within the crypto market.