Investors Accumulate SHIB as Exchange Reserves Hit Two-Year Low

Shiba Inu (SHIB) is testing critical support at $0.00001150, a level that has historically acted as a catalyst for rebounds amid volatile market conditions. Analysts and on-chain data suggest the token's ability to hold this zone could determine its next directional move, with bullish momentum potentially resuming if buyers defend the level. The price has approached this support multiple times this year, including in March, April, and June, each time triggering recoveries that pushed SHIB back toward higher levels. Recent data also indicates easing selling pressure, as exchange reserves of SHIB tokens have fallen to a two-year low, signaling reduced availability for immediate dumping.

Technical analysis further underscores the significance of $0.00001150. Coinvo, a prominent market analyst, emphasized the level as a "critical support zone for 2025," noting its role in halting sell-offs and spurring recoveries in prior tests. The token's price action has formed a descending triangle pattern, with support near $0.00001200 and resistance capped by a downward-sloping trendline. A confirmed breakout above resistance could target $0.00001600, a 34% gain from current levels. Meanwhile, indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) show mild bullish momentum, with RSI sitting at 51.59 and MACD lines hinting at an early upward shift.

Declining exchange reserves have added another layer of optimism. SHIB's holdings on exchanges have dropped to 84.34 trillion tokens, the lowest since 2023. This reduction suggests fewer tokens are available for immediate sale, potentially limiting downside risks. Community commentator Shib Spain highlighted this trend, linking it to improved odds of a rebound as October-a historically strong month for SHIB-unfolds. Historical performance in October has seen gains of 833% in 2021, 10.4% in 2022, and smaller but positive moves in subsequent years.

Investor behavior also points to accumulation. Mid-sized investors, holding between 0.1% and 1% of SHIB's supply, have increased their holdings by 7.63 trillion tokens since late 2024. This trend contrasts with a slight decline in whale dominance, indicating a shift toward broader participation. On-chain data further reveals massive exchange outflows of 111.8 billion tokens, reinforcing long-term positioning.

While bulls eye a potential rally, risks remain. If $0.00001150 fails to hold, SHIB could face accelerated sell-offs, opening the door to deeper corrections. Additionally, the token's 7-day price decline of 5.96% highlights lingering bearish pressure. However, the combination of strong historical support, favorable technical indicators, and accumulation trends has positioned SHIB at a pivotal juncture as market participants await a decisive move.

Source: [1] Shiba Inu Approaches Critical Level Amid Declining Exchange ... (https://coinpaper.com/11406/shiba-inu-approaches-critical-level-amid-declining-exchange-reserves)

[2] Shiba Inu Approaches Key Support Level: Will SHIB Rebound Again? (https://coincentral.com/shiba-inu-approaches-key-support-level-will-shib-rebound-again/)

[4] Shiba Inu Approaches Major Rebound Zone - Will SHIB Bounce (https://thecryptobasic.com/2025/10/01/shiba-inu-approaches-major-rebound-zone-will-shib-bounce/)

[6] Shiba Inu Price Analysis: Bearish Triangle Signals ... (https://coinedition.com/shiba-inu-forms-a-descending-triangle-but-key-indicators-are-flashing-bullish/)

[8] SHIB Price Analysis: Will Support At $0.00001200 Trigger A (https://www.tronweekly.com/shib-price-analysis-will-support-at-0-00001200/)

[9] Shiba Inu Forms a Descending Triangle, But Key Indicators Are ... (https://cryptonews.net/news/analytics/31581749/)

[10] Shiba Inu Investors Accumulate 7.63 Trillion SHIB in ... (https://thecurrencyanalytics.com/defi/shiba-inu-investors-accumulate-7-63-trillion-shib-in-2025-157256)

[11] SHIB Accumulation Strong; Technicals Hint Price Move (https://coinedition.com/shib-accumulation-price-breakout-onchain-technicals/)