Shiba Inu Price Prediction After Big Coinbase News as Whales Buy

Shiba Inu price remained in a strong downward trend and neared a key support level after Coinbase made a major announcement. SHIB token was trading at $0.0000080 on Tuesday, a few points above the crucial support level at $0.0000074. So, will it rebound after the Coinbase news and as whales buying continues?

Shiba Inu Price Received a Coinbase Boost

Shiba Inu Coin price has been in a strong downward trend this year, moving from the November high of $0.00003345 to the current $0.0000080.

A potential catalyst for the coin came from Coinbase, the biggest crypto exchange in the United States. In a statement on Monday, the company said that it was launching its perpetual futures for the coin.

Coinbase Derivatives will offer the futures products and will be available to retail and institutional investors. This is notable as the company has millions of customers in the United States and other countries.

Perpetual futures are popular derivatives contracts that let traders speculate on the coins without an expiry date. As such, these futures can be held in perpetuity as long as the margin requirements hold.

The launch is significant as it will facilitate the application process for financial services companies seeking to invest in a Shiba Inu Coin ETF. Based on the Securities and Exchange Commission’s (SEC) listing requirements, cryptocurrencies that have active futures contracts with a regulated company like Coinbase will have an easier path to approval.

Whales are Buying SHIB as Exchange Reserves Plunge

Meanwhile, Shiba Inu price will likely benefit because of the ongoing whale accumulation,  a sign that these investors believe that the coin will bounce back from the ongoing crash.

Nansen data shows that whales started buying SHIB tokens earlier this month. These investors have increased their positions to 98.95 billion, up from this month’s low of less than 2 billion tokens.

Similarly, the top-100 account holders boosted their tokens to 829 trillion from this month’s low 752 trillion. Smart money investors, who are professional investors with a record of success, have also increased their positions.

Most importantly, the number of Shiba Inu coins in exchanges has been in a free fall over the past few weeks, even as the crypto market crash has accelerated. The volume has dropped to 289 trillion today, much lower than this month’s high 367 trillion.

A drop in exchange balances is a sign that investors are accumulating the tokens and moving them to their self-custody addresses. In most cases, these exchange outflows often leads to a rebound.

Shiba Inu Coin Price Technical Analysis

The daily timeframe chart shows that the Shiba Inu price may be on the verge of a strong bullish breakout.

SHIB token has formed what looks like a double-bottom pattern at $0.00000772 and a neckline at $0.00000947. A double-bottom is one of the most common bullish reversal sign in technical analysis.

Additionally, the coin has been forming a falling wedge pattern, which is composed of two converging trendlines that are descending. The two lines are nearing their confluence point, meaning that a strong bullish breakout may happen.

The other bullish catalyst is that SHIB price has formed a bullish divergence pattern as the MACD indicator has continued moving upwards despite the token moving in a downward trend.

Therefore, the most likely Shiba Inu price forecast is bullish, with the next level to watch being the neckline of the double-bottom pattern at $0.00000947. A move above that level will point to more gains, potentially to the key resistance level at $0.00001493, up by 88% above the current level

On the flip side, a drop below the key support level at $0.00000772 will invalidate the bullish Shiba Inu price forecast. A drop below that level will point to more downside, potentially to $0.0000050.