Crypto analyst Zayn shared fresh on-chain data of Shiba Inu custody on social media platform X, pointing out that the meme coin may be setting up for what traders have nicknamed Uptober.
Interestingly, CryptoQuant’s data shows that Shiba Inu’s exchange reserves have been locked in a consistent downtrend throughout much of 2025, with large outflows steadily draining tokens from exchange wallets.
That trend briefly reversed in September when SHIB’s price attempted a breakout above $0.0000146 but was rejected. The rejection triggered a temporary spike in reserves, likely as short-term investors moved their holdings back onto exchanges to sell into the rally.
However, CryptoQuant data shows that the exchange reserve has resumed its outflows in the past few days, which shows that a massive amount of tokens are leaving exchanges and moving into self-custody or staking.
The decline in Shiba Inu’s exchange reserves carries weight because it directly impacts the balance between supply and demand. A shrinking supply of tokens on exchanges often translates to reduced selling pressure, since fewer holders are in a position to offload their tokens quickly.
At the same time, history has shown that significant drops in exchange reserves often precede phases of strong accumulation. These accumulation waves have acted as a foundation for rallies, and this gives a reason to believe that the current trend could once again set the stage for a meaningful price breakout.
SHIB’s track record in October provides an additional layer of confidence for its price outlook. Since its launch, Shiba Inu has never recorded a red October. Even during the 2022 bear market, SHIB managed to close the month in profit.
At the time of writing, Shiba Inu is trading at $0.00001261, up by 2.4% in the past 24 hours.
