Coinbase’s Addition of Shiba Inu Futures Could Lead to Increased Interest from Buyers
Shiba Inu’s SHIB token has seen a significant decrease in price lately, dropping by over 37% from its high of $0.000026 in June to a low near $0.0000169 on June 29. Despite this decline, Coinbase has announced its intention to list Shiba Inu futures contracts.
Coinbase aims to expand its digital asset offerings and meet the growing demand for diverse trading options. SHIB prices have been on a downward trend since June 6, attempting to recover from June 23 but ultimately dropping again.
The decision to list Shiba Inu for futures contracts makes Coinbase the first US exchange to offer margined futures contracts for the token. The exchange has filed with the Commodity Futures Trading Commission (CFTC) to begin trading soon.
Coinbase’s new list of futures products for its crypto derivatives market includes Shiba Inu, as well as other popular cryptocurrencies such as Avalanche (AVAX), Chainlink (LINK), Polkadot (DOT), and Stellar (XLM). Trading for these products is expected to commence on July 15.
The CFTC filing outlines the terms of these futures contracts, addressing Shiba Inu’s market volatility, regulatory compliance, and other certification details. Coinbase believes that adding Shiba Inu to its futures contracts will 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 significant development that could lead to increased acceptance of meme coins in mainstream financial products, ultimately resulting in greater adoption and stability over time.
Despite the announcement, Shiba Inu’s price has not shown significant improvement, currently trading below $0.000018. However, the memecoin has formed a bullish setup called the ‘falling wedge,’ which could benefit from the Coinbase news.
The falling wedge pattern suggests that an asset’s price, while consolidating in a downtrend, is losing bearish momentum and preparing for a potential reversal to the upside. Traders estimate the price target of a falling wedge pattern by measuring the widest part of the wedge at the beginning of the formation and projecting this distance upward from the breakout point to set a potential target.
According to technical analysis, the Shiba Inu token price could rally nearly 101% to reach the pattern’s theoretical price target near $0.0000342.
