Shiba Inu Exchange Reserves Plummet - Is an Uptober Rally Imminent?

Shiba Inu holdings on major exchanges are experiencing a dramatic exodus as traders pull their SHIB tokens into private wallets.

The Great Shiba Migration

Exchange reserves for the meme coin have hit unprecedented lows, suggesting investors are moving toward long-term holding strategies rather than quick trading. This massive withdrawal from trading platforms typically signals reduced selling pressure and potential price accumulation phases.

Uptober History Repeats?

Historical data shows October has frequently been bullish for cryptocurrencies, earning the nickname 'Uptober' among crypto enthusiasts. With exchange supplies drying up and seasonal patterns favoring upward momentum, SHIB could be positioning for another October surge.

Market analysts note the timing aligns perfectly with typical pre-rally behavior, though they caution that meme coins remain notoriously volatile. The current supply squeeze mirrors patterns seen before previous SHIB price explosions.

Whether this signals genuine investor confidence or just another round of crypto hopium remains to be seen - because nothing says 'sound investment strategy' like banking on dog-themed digital tokens during spooky season.

Image source: Getty Images.

Time to take some profits

As you've probably heard by now, President TRUMP posted yesterday on Truth Social a video (an infomercial, really) from The Commonwealth Project, which encouraged the president to grant Medicare coverage of medical marijuana use for senior citizens, and generally speaking, to encourage using cannabis to treat ailments of the "endocannabinoid system" as an alternative to "dangerous and addictive pharmaceuticals" sold by traditional pharmaceutical companies.

That news sent Green Thumb stock rocketing more than 15% yesterday, as investors bet the president WOULD soon announce official backing for medical marijuana -- or even for legalizing marijuana in general. The momentum carried over into this morning, spurred by a well-timed press release from Green Thumb announcing the open of its latest RISE marijuana dispensary in Lebanon, Pa.

For those keeping score at home, that's about 20% of gains for Green Thumb stock in barely 24 hours. If momentum traders decided that today might be a good day to take some profits, I could hardly blame them for it.

Is Green Thumb Industries stock a sell?

That doesn't mean you should sell, though. With $126 million in trailing free cash flow, Green Thumb is one of the most successful marijuana stocks out there, and it only costs about 15.5 times free cash FLOW in valuation.

While it's never easy to predict what's next on President Trump's agenda, if legalization is on the table, this could be a great price at which to get into Green Thumb stock.