Key Insights:
- Shiba Inu price exchange reserves decreased from 190 trillion in 2023 to 84 trillion, indicating reduced selling pressure.
- Analyst Zayn says SHIB enters an accumulation zone as Q4 momentum builds.
- Burn rate up 23% in 24 hours, with over 410B tokens permanently removed.
Shiba Inu price is attracting attention as October approaches, with analysts pointing to a potential rally. Exchange reserves are at a two-year low, while signals from the chart also indicate a breakout could be imminent. On-chain burn rate has also improved, fueling the bullish narrative.
Shiba Inu Price Outlook Picks Up Steam For Uptober
According to Zayn’s analysis, the Shiba Inu reserve on exchanges fell to 84.55 trillion tokens, representing the lowest level since 2023. This decline indicates a decrease in selling pressure, with fewer tokens held on centralized exchanges.
CryptoQuant data recorded balances of 190 trillion in January 2023, which decreased to 140 trillion just earlier this year. The continual shift towards self-custody and staking implies that investors are planning for long-term accumulation.
Such declines historically coincided with the upcoming rallies, Zayn added. With the SHIB price entering an accumulation zone, conditions are building for a bullish phase. This may coincide with October, which crypto traders refer to as “Uptober” due to its historical gains.
Falling Wedge Pattern Supports Breakout
From a technical perspective, the Shiba Inu price is trading near $0.0000117 and has retested the upper border of a falling wedge. FOMOwiz explained that this pattern is often a reversal signal before rallies.
He suggested that a very strong move above the descending resistance trendline could confirm a breakout. The wedge setup means that there could already be a magnitude change in favor of buyers.
If confirmed, this breakout could mark the start of SHIB’s October rally. Past price history also supports this view, as October has seen strong returns for the top meme token. This combination of technical signals and price signals on the chain gives reasons for optimism to traders.
Burn Rate Adds to SHIB’s Rally Outlook
On-chain data support the bullish case as Shiba Inu’s burn mechanism has spiked. According to Shibburn, the burn rate increased by 22.98% during the past 24 hours, and over 171,000 SHIB were permanently burned.
Recent transactions have shown community-driven burns, such as transfers of 101,853 SHIB and 69,420 SHIB from separate transactions. Smaller but more frequent fires have also contributed to the declining supply.
So far, over 410.7 billion SHIB have been burnt from the initial supply. This reduction imparts scarcity to the token, whereas staked SHIB currently amounts to more than 4.52 trillion. With fewer tokens in circulation, upward pressure could intensify if demand increases in October.
Traders maintain that a sustained trend of burning and a decrease in exchange reserves constitutes a perfect dual supply squeeze. This situation reinforces the likelihood of a significant breakout during the Uptober period.
Uptober History Adds Heavy to Bullish Case
Historically, the Shiba Inu price has performed well in the month of October. Its record high of $0.00008845 was achieved in October 2021, the peak of its most explosive rally.
Even in weaker years, the SHIB price managed to post gains in October. It closed October 2022 with 10.4% growth and 2023 with 6.04%. Last year’s increase was smaller, just 2.46%, but positive nonetheless. On average, SHIB’s October growth stands at an impressive 213%.
Zayn emphasized that these historical returns, paired with reserves contraction and burn acceleration, set the stage for a positive outlook for Uptober 2025. Despite this, community sentiment is very positive and is approaching the fourth quarter with a typically bullish outlook.
Shiba Inu Price Faces Challenges
Despite these positive signs, Shiba Inu continues to underperform compared to the overall market recovery. With other assets experiencing modest gains, the SHIB price is down slightly to near $0.0000119, after briefly surpassing its high of $0.000012 yesterday.
Analysts warn that resistance points must be breached for SHIB to continue its rally. Analysts are watching $0.000012 and $0.0000135 as actionable levels to watch for support of the price move.
Until these breakouts occur, Shiba Inu remains vulnerable to consolidation. However, with reserves at their lowest in two years and burn activity accelerating, many investors expect October to be the catalyst for the SHIB rally.
Moses K is a crypto journalist covering markets, regulation, and blockchain trends. He has written for The Coin Republic, Coinchapter, Cryptopolitan, Cryptotale, Coinspeaker, and MPost. Known for his concise, data-driven reporting, Moses focuses on price analysis, on-chain metrics, and policy developments shaping the global digital asset landscape.
