• Shiba Inu burns 8.6 million tokens in 7 days, reducing supply to stabilize its price.
• SHIB’s exchange reserves drop, signaling less selling pressure and a shift in market sentiment.
• Token burns and reduced supply set the stage for a potential SHIB price rally in Q4 2025.
  

Over the past 7 days, Shiba Inu (SHIB) has burned more than 8.6 million according to ShibBurn data. This token burn is one aspect of SHIB’s deflationary model that targets shrinking its supply in order to stabilize the price of the crypto. The relocation is further seen as SHIB battles a downward trend. Coin burn is expected to create a bullish for the coming days for the token.

SHIB runs on a deflationary design, which means that once tokens are pulled from circulation. The tokens minted are burned through transaction fees that are levied on trades. In the past 24 hours, 171,407 SHIB tokens were destroyed as part of the recurring decrease in circulating supply. 

SHIB Reserves Drop, Signals Accumulation Shift”

Moreover, there’s an emerging pattern indicating a reduction in SHIB reserves on exchanges. This suggests people are being more willing to remove their tokens from exchanges. They are either self-custodying them or staking them in order to generate passive returns. This decrease in trade reserves indicates that the market sentiment may have shifted. 

Also Read: Shiba Inu’s Big Test: Will SHIB Reclaim Its $0.000088 ATH before 2026?

Analyst Zayn noted that SHIB exchange reserves are at their lowest since 2023. As of January 2023, reserves had 190 trillion Tokens. Reserves have now dwindled to 84.55 trillion tokens. This steep drop indicates that whales are collecting Shiba Inu and taking it off the market. According to the analysis, few tokens on exchanges may indicate a change in the market sentiment is coming soon.

Source: X

Zayn also observed that this decline of reserves was a typical signal of accumulation. The more long-term holders there are, the less tokens for sale. That could reduce selling pressure and pave the way for a price rally. 

Shiba Inu Tests Key Support: Bullish Potential on the Horizon

SHIB’s price is below a descending resistance trendline. Breaking above this trendline may result in a bounce. Such a development may pave the way for a stronger bullish momentum, Zayn said. October has tended to be a good month for cryptocurrencies with many coins- SHIB included – registering gains. Not all of this history favors a possible October rally, however.

However, SHIB’s short term outlook is not so certain even though things are looking up. Analysts are, however, hopeful about Shiba Inu’s potential for Q4 2025. The token’s price has been bouncy, but the larger market sentiment remains optimistic. A small inflow of $638,000 on September 30 also indicates that the growth could continue in the months ahead.

Source: Coinglass

At press time, SHIB is down by 1.47% in the past 24 hours to $0.00001182. Price is testing a strong support around $0.00001168. Should this level be maintained, SHIB may rebound. Conversely, if it breaks down, the token could drop toward the next support at $0.00001129.

The resistance levels also play an important role in the price movement of SHIB. There is an immediate resistance at $0.00001269. There could be a new high that would then signal continued movement upward. The 100-day moving average at $0.00001278 is the next resistance. There is a more critical resistance around $0.00001295, which might take greater force to overcome.

Source: TradingView

The MACD is showing the selling pressure is easing. The MACD line is -0.00000011, and the signal line is 0.00000029. The MACD histogram clearly declined as well in showing sell-side pressure is weakening. There are early indications that SHIB may begin to transition into potential reversal.

Token burns for Shiba Inu and a decrease in exchange reserves indicate a potential flip towards the bulls. There are obstacles to overcome but its deflationary nature and lower sell pressure could be the key to a price resurgence. Investors are closely monitoring whether SHIB can surpass key resistance and form a new trend over the months to follow.

Also Read: SHIB October 2025 Outlook: Will Shiba Inu (SHIB) Surprise Investors With Bullish Gains?