Shiba Inu is back in the spotlight as October begins, trading above $0.000012 after weeks of slow movement. Despite the sideways price movement, on-chain data suggests a breakout in the metrics.
Exchange reserves have fallen to the lowest level since 2023
CryptoQuant reports that Shiba Inu's exchange reserves have dropped to 84.55 trillion tokens, valued at $998 million at the current SHIB price. This is significant as cryptocurrency exchanges have held the least amount of SHIB since 2023, when the cryptocurrency market began to recover.
According to CryptoQuant, Shiba Inu exchange balances have been decreasing for most of 2025, with massive withdrawals draining tokens from exchange wallets.
In September, the price of SHIB attempted to surpass $0.0000146 but failed. The rejection certainly prompted short-term investors to sell again on exchanges during the rise, boosting reserves.
Why is it important?
The decline in Shiba Inu coin reserves affects supply and demand. Since fewer holders can quickly sell their tokens, exchanges with a smaller supply of tokens have less selling pressure.
Significant reductions in exchange reserves often precede a strong increase, according to history. These waves of accumulation have supported rallies, so the current trend could create the environment for a major price breakout again.
Since May 2025, SHIB has traded slightly below a declining resistance trend line with lower highs and higher lows, Zayn commented. A breakout above this higher low barrier is positive.
SHIB's performance in October increases its price expectations. Shiba Inu has never had a red October since its debut. SHIB made gains in 2022 despite the poor market.
This ongoing performance and the depletion of Shiba Inu's exchange reserves have convinced experts that SHIB could rise soon. If the pattern continues, Shiba Inu could have another Uptober rally in October 2025.
