It’s not just the burns. Exchange reserves are sliding, too — a sign more holders are pulling coins off centralized venues into self-custody or staking. Fewer tokens sitting on exchanges often means thinner sell pressure and a healthier setup for an upside push.

Exchange Reserves Hit Multi-Year Lows

Analyst Crypto Zayn highlights that SHIB’s exchange reserves have dropped to their lowest since 2023. With circulating supply near 84.55T and fewer tokens parked on exchanges, the sell-side cushion gets thinner — a classic early tell for accumulation.

Zayn’s read: as long-term holders grow, fewer SHIB are up for sale — combine that with ongoing burns and you’ve got the foundations for the next leg higher. Technically, price still sits below a descending resistance trendline, but a decisive breakout could ignite a broader relief rally — maybe even kick off crypto’s so-called “Uptober.”

Price Check: Testing Support, Watching Resistance

At writing, SHIB trades near $0.00001177 (−1.37% 24h, per CoinMarketCap), pressing on a key support at $0.00001168. Hold that level and a bounce builds a base; lose it and bears may probe the $0.00001129 zone.

SHIB price near support on KuCoin
SHIB/USDT on KuCoin. Source: TradingView
  • Immediate resistance: $0.00001269 (daily supply)
  • Next hurdles: $0.00001278 (100-DMA) and $0.00001295 (200-DMA)

Resistance levels are set at $0.00001269 (the nearest on the daily chart), followed by $0.00001278 (100-day moving average), and then $0.00001295, where the 200-day MA runs. Breaking through these levels will require a significant increase in volume.

Meme Coin Indicators

The MACD remains in the negative zone: the MACD line is fixed at –0.00000029, while the signal line is at –0.00000018. This keeps the bearish sentiment, but the shrinking red histogram bars and narrowing gap between the lines indicate that selling pressure is easing. This may be a sign of a potential reversal forming.

Thus, SHIB’s recent token burns and the decline in exchange reserves are strengthening expectations of a bullish scenario. Coins are moving into staking and self-custody, forming an accumulation phase. Despite risks, the positive market sentiment and historically strong October performance make Shiba Inu one of the assets worth watching closely in the near term.