Top crypto analyst Zayn has suggested that Shiba Inu is poised for an “Uptober” rally, as its exchange reserves hit a two-year low.
In an X post yesterday, Zayn sparked fresh bullish momentum by revealing that Shiba Inu’s exchange reserves had fallen to 84.55 trillion tokens, marking its lowest level since 2023, two years ago.
Fewer SHIB Now Available on Exchanges
CryptoQuant data shows that around 190 trillion SHIB were held on exchanges in January 2023. Since then, the balance has steadily declined, falling to 140 trillion at the start of this year. The downward trend has continued, with exchange reserves now sitting at just 84.49 trillion.
Zayn pointed out that the tokens are being moved into self-custody and staking, rather than remaining on centralized exchanges. The falling exchange reserves typically signal reduced selling pressure, as fewer tokens are readily available for sale on exchanges.
Zayn mentioned that such declines have often preceded accumulation phases, where long-term holders strengthen their positions. With Shiba Inu now entering an accumulation zone, he hinted that conditions may be forming for the next wave of upward momentum.
Breakout Could Fuel Uptober Rally
Meanwhile, on the technical side, Zayn noted that SHIB is trading near $0.000011 while moving beneath a descending resistance trendline. He suggested that a decisive breakout above this level could serve as the catalyst for a broader “Uptober” rally.
For context, crypto enthusiasts have used ‘Uptober’ in reference to October, given the month’s reputation for bullish momentum. Historically, October has been bullish for cryptocurrencies, including Shiba Inu. The token’s all-time high of $0.00008845 was recorded in October 2021.
It also closed October 2022 and 2023 with gains of 10.4% and 6.04%, respectively, while its weakest October rally was last year at just 2.46%. On average, SHIB has posted an impressive 213% growth in Octobers historically.
Shiba Inu Lackluster Performance Continues
While this does not guarantee Shiba Inu will post substantial gains next month, the broader crypto community remains bullish on Q4 2025, which begins on October 1. Speculation suggests that the next phase of the 2025 rally will kick off next month.
The market is already showing signs of optimism, with several assets posting modest gains. However, Shiba Inu has yet to benefit from the rally.
After briefly climbing above $0.000012 yesterday, SHIB has since pulled back to $0.00001187, where it trades at the time of writing.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
