NOIDA (CoinChapter.com)—Shiba Inu’s SHIB token has experienced notable price declines recently, trading more than 37% from June’s high of $0.000026 to reach a daily low near $0.0000169 on June 29. Despite the recent downsides, Coinbase has announced plans to list Shiba Inu futures contracts.
The move comes as part of Coinbase’s broader strategy to enhance its digital asset offerings and cater to the growing demand for diverse trading options. SHIB prices have been in a downtrend since June 6, with the token trying to crab since June 23 before dropping again.
Coinbase Expands Futures Trading with Shiba Inu
Coinbase has announced plans to list Shiba Inu for futures contracts, a news that could attract buyers towards SHIB. The exchange submitted a filing to the Commodity Futures Trading Commission (CFTC) to commence trading soon.
The decision makes Coinbase the first US exchange to offer margined futures contracts for Shiba Inu.
On June 28, Coinbase revealed a new list of futures products for its crypto derivatives market, including Shiba Inu and other popular cryptocurrencies such as Avalanche (AVAX), Chainlink (LINK), Polkadot (DOT), and Stellar (XLM). Trading for these futures products is set to begin on July 15.
The CFTC filing provides detailed terms of these futures contracts, addressing Shiba Inu’s market volatility, regulatory compliance, and other certification details.
Moreover, Coinbase stated that adding Shiba Inu to its futures contracts would help participants manage risks, speculate on price movements, and engage more deeply with the crypto economy with less initial capital.
The inclusion of Shiba Inu in Coinbase’s futures contracts represents a notable development. The move could help increase the acceptance of meme coins in mainstream financial products, leading to greater adoption and stability over time.
SHIB Price Moving Inside Bullish Setup
Despite the announcement, Shiba Inu’s price has not shown significant improvement, currently trading below $0.000018. The memecoin has seen a 1.8% drop in the past 24 hours, reflecting the overall bearish sentiment.
However, SHIB price has formed a bullish setup called the ‘falling wedge,‘ which could benefit from the Coinbase news.
A falling wedge pattern features a pair of converging trend lines connecting lower highs and lower lows, forming a narrowing shape that slopes downward.
The pattern typically suggests that an asset’s price, while consolidating in a downtrend, is losing bearish momentum and preparing for a potential reversal to the upside. Typically, a breakout occurs in the direction of the overall trend, which, for a falling wedge, is upward.
To estimate the price target of a falling wedge pattern, traders measure the widest part of the wedge at the beginning of the formation. They then project this distance upward from the breakout point to set a potential target.
An accompanying increase in trading volume can further confirm the reliability of the breakout. Higher volume during the breakout suggests stronger market conviction, supporting the likelihood of a successful price reversal.
According to the rules of technical analysis, the Shiba Inu token price could rally nearly 101% to reach the pattern’s theoretical price target near $0.0000342.
